Texas-based CEC Entertainment Inc. is reported exploring a potential sale to private equity firm. CEC is the parent company of family restaurant and entertainment chain Chuck E. Cheese's.
Reuters, citing sources, said that CEC is working with Goldman Sachs Group Inc. on the sale and has been speaking with interested buyers over the last several months. CEC has a market capitalization of around $760 million.
CEC and its franchisees operate 567 Chuck E. Cheese's stores in 47 states, the majority of which are owned and operated by the company. Chuck E. Cheese's stores have musical and robotic entertainment, games, rides, play areas and offers food like pizza and sandwiches, the report said.
CEC is the latest in a handful of restaurant chains which are exploring a potential sale. CKE Restaurants Inc., which owns the Carl's Jr. and Hardees chains, sold to buyout firm Roark Capital Group in November for $1.65 billion to $1.75 billion, Reuters said.
Carlson is attempting to sell its TGI Fridays business, while Ruby Tuesday Inc. and Dave & Busters are also on the block, the report said.
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