Apollo Global Management has completed its acquisition of CEC Entertainment, the company behind the Chuck E. Cheese’s chain.
“We are excited to announce the completion of this transaction,” said Scott Ross, partner at Apollo. “We look forward to working alongside CEC’s strong management team, dedicated employees and franchise partners to support the company’s growth.
“Throughout the US and increasingly around the world, the Chuck E. Cheese’s brand has become synonymous with quality, safe and fun family entertainment.”
The acquisition was effected through a tender offer followed by a merger. The tender offer, which was made at $54 per share in accordance to the agreement and plan of merger entered into by affiliates of Apollo and CEC in January, expired last week. In keeping with the merger agreement, Apollo and CEC subsequently completed the acquisition by merging CEC with an affiliate of Apollo. As result, CEC becomes a privately-held, wholly-owned subsidiary of affiliates of Apollo and CEC will cease to continue trading on the New York Stock Exchange.
The deal is estimated to be worth $1.3bn.
“We look forward to starting the next chapter in the long standing history of Chuck E. Cheese’s in partnership with Apollo,” said Michael Magusiak, president and CEO of CEC. “We believe this merger provides many opportunities for our team as we continue to evolve and grow our business around the world while continuing to provide our guests with an outstanding experience.”
CEC presently operates 577 Chuck E. Cheese’s stores.
