"Tussauds and Merlin are very complementary businesses and thereis an obvious commercial logic in bringing them together," saysSameer Al Ansari, CEO of DIC. "As a reflection of our confidence inthis deal, DIC will retain 20% of the larger business and we hopeto share in the benefits of its future profitable growth."

The combined Merlin and Tussauds will operate 50 attractions andfour hotels in 12 countries on three continents. Some of the betterknown attractions in the portfolio include Madame Tussauds,Legoland, Sea Life and British Airways London Eye. There are MadameTussauds wax museums in Manhattan and Las Vegas, with plans to openan additional location in Washington, DC.

Management of the combined companies will include Merlin's chiefexecutive Nick Varney, as CEO, and Tussauds' chief executive PeterPhillipson becoming non-executive chairman. Merlin's CFO AndrewCarr will continue as CFO and Tussauds' CFO Rob Roger is in chargeof heading the integration process.