The Chuck E. Cheese's (CEC) parent company, CEC Entertainment Inc, entered a deal for the food and entertainment chain to be formally acquired by Apollo Global Management. The leveraged buyout deal of the troubled company is valued at $950 million, according to Examiner.
In an official press release, CEC said of the buyout: "The companies have confirmed that Apollo will pay $54 per share for CEC Entertainment Inc. In total, that's about a 25 percent premium over CEC's closing price as of this Jan. 2014, the last trading day before media speculation regarding a transaction, the companies noted. They put the deal's value at about $1.3 billion, including all contained debt. CEC, Inc. has approximately 17.6 million outstanding shares at this time, according to tracking site FactSet."
The popular entertainment chain for kids has been struggling in its sales due to decreasing popularity. Even with a 2012 makeover of the CEC mouse in a bid to make it look more modern, the firm still faced hard times, the report explained.
The CEC board gave a unanimous approval of the buyout deal this week, Examiner reported.
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