LONDON, July 30 (Reuters) - Private equity firm EQT

has initiated a strategic review of the U.S. operations

of Spanish amusement park operator Parques Reunidos that could

lead to a sale of the business, according to two sources

familiar with the matter.

JP Morgan is conducting the review, which could result in

the sale or merger of the 15 leisure centres that the company

operates in the U.S., the sources said on condition of anonymity

because the discussions are private

The review is at an early stage, and it is premature to

predict its outcome, according to one of the sources. EQT could

choose to retain the asset following the review, the person

said.

The potential sale of Parques Reunidos' U.S. operations,

which represents over a third of the group's core earnings,

could be valued at around 1 billion euros, according to the

second source.

The review would start after the summer season, when the

parks witness their highest visitor turnout, the person said.

Parques Reunidos did not reply immediately to a request for

comment. JP Morgan declined to comment.

In 2023, Parques Reunidos' earnings before interest, taxes,

depreciation, and amortization (EBITDA) reached 233.4 million

euros, marking a 3.8% increase from the previous year, based on

its latest public annual accounts.

The potential deal follows the $8 billion merger between two

of the largest U.S. amusement park operators, Cedar Fair

and Six Flags Entertainment ( FUN ), announced last year.

Despite ongoing inflationary pressures and economic

uncertainty, Parques Reunidos projects a cash flow of 224.8

million euros in 2024, up from the 192 million euros achieved in

2023, according to its latest accounts.