CEC Entertainment, the operator of the Chuck E. Cheese’s chain, is to be acquired by an affiliate of Apollo Global Management in a deal worth $1.3bn.
The two have entered into a definitive merger agreement under which the investment management company will acquire CEC for $54 per share.
“This transaction with CEC gives us the opportunity to partner with the proven leader in family dining and entertainment,” said Scott Ross, partner at Apollo Global Management. “Across the US - and increasingly around the world - the Chuck E. Cheese’s brand represents quality, safe and fun family entertainment."
CEC operates 577 Chuck E. Cheese’s stores and this deal, said president and CEO Michael Magusiak, recognises the value of CEC’s “global brand, strong cash flows and growth prospects.
“Apollo brings significant industry expertise and financial resources and we look forward to working with them to further grow CEC domestically and internationally,” he said.
