Skip to main content

Chuck E. Cheese (CEC Entertainment) to be Acquired by Apollo

News

CEC Entertainment Inc., the US family dining and entertainment which operates 577 Chuck E. Cheese’s stores, is to be acquired by an affiliate of Apollo Global Management.

Apollo, a leading global alternative investment manager, will acquire CEC for approximately $1.3 billion, which includes taking on CEC’s outstanding debt.

chuck e.cheese's logoThe acquisition announcement follows a strategic review carried out by CEC.  Michael H. Magusiak, President and Chief Executive Officer of CEC, said, “We are excited about this transaction with Apollo, as it recognizes the value of CEC’s global brand, strong cash flows and growth prospects while providing our shareholders with an immediate and substantial premium.  Apollo brings significant industry expertise and financial resources, and we look forward to working with them to further grow CEC domestically and internationally.”

The acquisition by Apollo translates into a cash offer of $54.00 per share – a premium of approximately 25% over CEC’s closing share price on January 7, 2014.

Scott Ross, Partner at Apollo Global Management, said, “This transaction with CEC gives us the opportunity to partner with the proven leader in family dining and entertainment.  Across the U.S., and increasingly around the world, the Chuck E. Cheese’s brand represents quality, safe and fun family entertainment."

 

More from this author

Related content

Your web browser is out of date. Update your browser for more security, speed and the best experience on this site.

Find out how to update