Following the billion-dollar acquisition of Chuck E. Cheese’s operator CEC Entertainment, rumours are circulating that the new owner, Apollo Global Management, is lining up a bid for the Dave and Buster’s chain.
Apollo completed the $1.3bn acquisition of CEC Entertainment, which operates 577 Chuck E. Cheese’s stores, in February.
According to a Bloomberg report this week, the private equity firm is now weighing up a bid for the more adult-orientated restaurant and arcade business.
Citing two people with knowledge of the matter, it said D&B’s owner, Oak Hill Capital Partners, values the company at $1bn.
“A Dave and Buster’s acquisition could lead to synergies with Chuck E. Cheese, including greater purchasing scale for food and entertainment and lower distribution costs,” said Jennifer Bartashus, an analyst at Bloomberg Industries.
In December, Dave and Buster’s revealed that it was planning to open at least seven new stores in 2014.
The company made the announcement on the back of strong third-quarter results, which saw total revenues for the period increase 8.6 per cent year-on-year to $142.3m. Store sales increased 2.4 per cent. Across all stores, food and beverage revenues rose 9.6 per cent and amusements other revenues rose 7.6 per cent. Adjusted EBITDA was up 10 per cent at $19.8m.
