Jan 16 Apollo Global Management LLC will
buy CEC Entertainment Inc, the parent of Chuck E Cheese
restaurant chain, for about $1 billion, the Financial Times
The fund controlled by billionaire Leon Black will pay $54
per share for CEC, the newspaper reported, citing sources
familiar with the matter. (link.reuters.com/vuw95v)
The deal, which will be announced on Thursday morning, is an
11.5 percent premium to CEC's Wednesday close of $48.43.
Last week, Reuters exclusively reported that CEC was working
with Goldman Sachs Inc and was speaking with interested
buyers over the last several months.
Apollo is among a number of private equity firms to have
expressed interest in the group, the Financial Times said, and
is using Deutsche Bank to lead the financing for its
CEC and its franchises operate 567 entertainment-focused
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.
Apollo and CEC could not be immediately reached for comment,
outside of regular U.S. business hours.
(Reporting by Chris Peters and Sakthi Prasad in Bangalore;
Editing by Supriya Kurane)