Apollo Global Management will acquire CEC Entertainment, the parent company of family entertainment center Chuck E Cheese’s, for $1.3 billion, according to a statement.
The price represents roughly a 25 percent premium over CEC Entertainment’s closing share price on 7 January, its last day of trading. CEC Entertainment and its franchisees operate 567 Chuck E Cheese’s stores in 47 states and nine foreign countries.
The deal comes one week after Apollo closed its eighth flagship buyout fund on $17.5 billion. Fund VIII, which had an original target of $12 billion, is Apollo’s largest to date. The vehicle began its investment period on 1 September 2013, Private Equity International previously reported.
Fund VIII will continue to invest using Apollo’s strategy of targeting distressed companies, corporate carve-outs and buyouts. The fund has received commitments from the Oregon Investment Council, the San Antonio Fire & Police Pension Fund and the Florida State Board of Administration, according to PEI’s Research and Analytics division.
Apollo has about $43 billion of private equity assets under management as of 30 September 2013.