Exclusive: Chuck E Cheese parent CEC Entertainment explores sale: sources

Tue Jan 7, 2014 4:32pm EST

Related Topics

(Reuters) - CEC Entertainment Inc CEC.N, the parent of family restaurant and entertainment chain Chuck E Cheese, is exploring a potential sale to private equity, according to people familiar with the matter.

The Irving, Texas-based company, which has a market capitalization of around $760 million, is working with Goldman Sachs Group Inc (GS.N) and has been speaking with interested buyers over the last several months, the people said on Tuesday.

The people declined to comment because the matter is not public.

CEC and Goldman Sachs declined to comment.

CEC and its franchisees operate 567 Chuck E Cheese stores in 47 states, the majority of which are owned and operated by the company. The company's Chuck E Cheese stores have musical and robotic entertainment, games, rides, play areas and food like pizza and sandwiches.

CEC is the latest in a handful of restaurant chains which are exploring a potential sale.

CKE, the restaurant group that owns the Carl's Jr and Hardees chains, sold to buyout firm Roark Capital in November for between $1.65 billion and $1.75 billion.

Hospitality firm Carlson is attempting to sell its TGI Fridays business, while Ruby Tuesday Inc (RT.N) and Dave & Busters are also on the block, sources familiar with the matter said previously.

(Reporting by Olivia Oran; Editing by Bernard Orr)

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

California state worker Albert Jagow (L) goes over his retirement options with Calpers Retirement Program Specialist JeanAnn Kirkpatrick at the Calpers regional office in Sacramento, California October 21, 2009. Calpers, the largest U.S. public pension fund, manages retirement benefits for more than 1.6 million people, with assets comparable in value to the entire GDP of Israel. The Calpers investment portfolio had a historic drop in value, going from a peak of $250 billion in the fall of 2007 to $167 billion in March 2009, a loss of about a third during that period. It is now around $200 billion. REUTERS/Max Whittaker   (UNITED STATES) - RTXPWOZ

How to get out of debt

Financial adviser Eric Brotman offers strategies for cutting debt from student loans and elder care -- and how to avoid money woes in the first place.  Video