MADRID: Swedish private equity firm EQT is preparing to sell its controlling stake in Spanish theme park operator Parques Reunidos, newspaper Expansion reported Friday, citing unnamed market sources.

The private equity firm has hired JPMorgan to help with the sale of the stake, Expansion said. According to the sources, the stake is valued at about 1.7 billion euros ($1.9 billion).

Parques Reunidos manages dozens of theme parks, zoos and water parks across Europe, including Madrid’s Parque Warner. The company, based in Madrid, runs more than 30 leisure centers in ten countries.

EQT took control of the company in 2019 through a public tender offer launched by Piolin BidCo. Corporación Financiera Alba and Belgian holding company Groupe Bruxelles Lambert also joined the vehicle at that time. EQT owns 51% of the company, while Corporacion Financiera Alba and Belgian investment fund Groep Brussel Lambert hold stakes of 25% and 23%, respectively.

When EQT entered, the company had an enterprise value of 2.085 billion euros. The Swedish investment manager allocated 6% of EQT Infrastructure IV to the acquisition, a fund that raised 9 billion euros in 2019. EQT invested around 540 million euros of capital in the Spanish company before any possible co-investments.

Expansion reported that the sale process is still at an early stage and may attract industrial operators such as Merlin Entertainments and Compagnie des Alpes.

The potential sale comes as Parques Reunidos’ Madrid flagship faces uncertainty over its long-term operating rights. Madrid’s city authorities sought a new operator for Parque de Atracciones de Madrid this year, with tender terms including an annual fee of 400,000 euros and a variable payment equal to 8% of revenue. Tender documentation published by Madrid’s city government requires the park’s operator to commit 15 million euros in investments during the first three years of the concession.

The move follows other recent portfolio changes at Parques Reunidos. Earlier this year, the company agreed to sell its U.S. business, Palace Entertainment, to Herschend as part of a broader strategy to focus on its European operations.

EQT and Parques Reunidos were not immediately available for comment. JPMorgan also declined to comment, according to Expansion.

($1 = 0.8791 euros)