Chuck E. Cheese's sale to private firm finalized

Feb. 17, 2014

An affiliate of Apollo Global Management LLC and Chuck E. Cheese's parent company, CEC Entertainment Inc., announced on Friday the completion of the investment company's acquisition of the 577-unit pizza and entertainment chain.

According to a news release, the acquisition was effected through a tender offer followed by a merger. The tender offer, which was made at $54 per share pursuant to the agreement on Jan. 15, expired on Feb. 14 at 9:30 a.m.

As part of the merger agreement, Apollo and CEC completed the acquisition by merging CEC with an affiliate of Apollo. As a result, CEC will become a privately-held, wholly-owned subsidiary of affiliates of Apollo and CEC's common stock will cease trading on the NYSE.

"We are excited to announce the completion of this transaction," Scott Ross, partner at Apollo, said in the release. "We look forward to working alongside CEC's strong management team, dedicated employees and franchise partners to support the Company's growth. Throughout the U.S. and increasingly around the world, the Chuck E. Cheese's brand has become synonymous with quality, safe and fun family entertainment."

Excluding CEC shares tendered by notice of guaranteed delivery, a total of approximately 11,953,853 shares of common stock, representing approximately 68 percent of the outstanding shares on a fully diluted basis, were tendered into and not withdrawn from the tender offer.

"We look forward to starting the next chapter in the long standing history of Chuck E. Cheese's in partnership with Apollo," said Michael H. 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."

Goldman, Sachs & Co. is serving as financial advisor to the company, and Weil, Gotshal & Manges LLP is serving as the company's legal advisor. Deutsche Bank Securities Inc., Credit Suisse, Morgan Stanley and UBS Securities LLC are serving as financial advisors to Apollo and provided debt financing. Wachtell, Lipton, Rosen & Katz and Paul, Weiss, Rifkind, Wharton & Garrison LLP are serving as Apollo's legal advisors.

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Topics: Chuck E. Cheese's Pizza , Financing and capital improvements , Operations Management , Public Companies

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