CEC Entertainment, parent company of the Chuck E. Cheese's chain, announced a merger agreement with Apollo Global Management, in which the private equity firm will acquire CEC for approximately $1.3 billion, including the assumption of debt.
Apollo's $54 per share, all-cash offer represents a premium of approximately 25 percent over CEC's closing share price on Jan. 7, the last trading day prior to media speculation regarding a possible sale. The transaction was unanimously approved by the CEC Board, which recommends that CEC shareholders tender their shares in the offer.
"We are pleased to have reached this agreement with Apollo, which maximizes value for all of our shareholders," Richard M. Frank, executive chairman of CEC, said in the announcement. "This transaction represents the successful conclusion of our extensive review of strategic alternatives."
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