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Private-equity firm to buy Chuck E. Cheese's parent company in $1.3 billion deal

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XiaNaphryz

LATIN, MATRIPEDICABUS, DO YOU SPEAK IT
http://nrn.com/mergers-acquistions/apollo-agrees-buy-chuck-e-cheeses-parent-13b-deal

Private-equity firm Apollo Global Management LLC has agreed to buy CEC Entertainment Inc., parent to the Chuck E. Cheese’s brand, in a deal worth about $1.3 billion, including debt assumption, the companies said Thursday.

New York-based Apollo agreed to pay $54 per share for the Irving, Texas-based CEC — an 11.5-percent premium over Wednesday’s close of $48.43 per share and 24.6 percent over the $43.34 close Jan. 7, when Reuters first reported that CEC was seeking strategic alternatives.

Lynne Collier, a Dallas-based analyst with Sterne Agee, said, “The offer is essentially in line with our previously published base case valuation estimate of $54.79.”

She added that it was a “reasonable offer” of about 7.4 times earnings before income taxes, depreciation and amortization, given CEC’s historical trading range of about 5.5 to 6.5 times EBITDA.

CEC’s board unanimously approved the Apollo deal, but the parent to the 577-unit Chuck E. Cheese’s chain reserved the option of seeking a higher bid until Jan. 29.

The board also approved a shareholders’ rights plan, or “poison pill,” that allows for shareholders to exercise an option if an investor other than Apollo acquires more than a 10-percent interest in CEC.
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Scott Ross, partner at Apollo Global Management, said in a statement, “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."
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A

Aylinato

Member
Chuck e cheese is not the first or even the next 50 next places I think of when I hear quality and safe. Fun yes, but those two no.
 
X

XiaNaphryz

LATIN, MATRIPEDICABUS, DO YOU SPEAK IT
shadyspace said:
There aren't video games at Chuck E Cheeses anymore? What the hell is left? Is it all Skeeball?
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I went a month or two ago with my kids for a birthday party. First time I've been to one in over 20 years, it's a a lot brighter than I remember. Can't recall it being so well-lit. It was mainly carnival type games where you try to win tickets/tokens and some random arcade games.
 
M

Midnight Bliss

Member
they changed the recipe for their pizza years ago, so it hasn't been good since.

Will always remember those simpsons arcade days and spider man the arcade. Doesn't compare to the family fun center but what can you do.
 
Lamel

Lamel

Banned
Yeah Chuck-E-Cheese always creeped me the fuck out. It's like that place Max and Goofy went to the in The Goofy Movie.


POSSUM PARK

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