CEC Entertainment To Be Acquired By Apollo Global For About $1.3 Bln

(RTTNews) - CEC Entertainment, Inc. (CEC), an operator of Chuck E. Cheese stores, said Thursday it would be acquired by Private equity firm Apollo Global Management LLC (APO) in a deal valued at about $1.3 billion, including the assumption of outstanding debt.

Apollo's $54 per share cash offer for the restaurant group represents a premium of about 25 percent over CEC's closing share price on January 7, the last trading day prior to media speculation regarding a possible transaction and a premium of about 36 percent over the twelve-month volume weighted average share price for the period ending January 7.

The CEC board, which unanimously approved the deal, recommends CEC shareholders to tender their shares in the offer. The acquisition is subject to, among other things, the satisfaction of the minimum tender condition of more than 50 percent of the Company's common shares, Federal Trade Commission's approval, and other customary closing conditions.