In mid-January, an affiliate of global alternative investment manager Apollo Global Management, LLC and CEC Entertainment Inc. entered into a definitive merger agreement in which Apollo will acquire 577 Chuck E. Cheese’s family dining and entertainment restaurants for approximately $1.3-billion, including the assumption of the company’s outstanding debt. The acquisition comes in the wake of a thorough review of strategic alternatives undertaken by the CEC Board of Directors to maximize shareholder value. 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,” said Richard M. Frank, Executive Chairman of CEC. “This transaction represents the successful conclusion of our extensive review of strategic alternatives.” Late in January, The Dallas Morning News reported that a number of Chuck E. Cheese shareholders have filed lawsuits in an attempt to block the acquisition. CEC Entertainment and its franchisees operate Chuck E. Cheese’s units in 47 states and ten foreign countries or territories. Currently, 522 locations in the United States and Canada are owned and operated by the company. Each of the units features musical and comic robotic entertainment, games, rides and play areas, as well as a variety of dining options including pizza, sandwiches, wings, appetizers, a salad bar and desserts. Traditionally the chain locates in highly visible sites in the 15,000 to 16,000 square foot range.
CATEGORY: Family Dining/Entertainment
Chain Name: Chuck E. Cheese
Company Name: CEC Entertainment LLC
Street Address: 4441 W. Airport Freeway, Irving, Texas 75062
Mailing Address: P.O. Box 152077, Irving Texas 75015
Tel: 972/258-8507 Fax:
Email: guestrelations@cecentertainment.com , international@cecentertainment.com
Website: www.cecentertainment.com
Menu Specialty: Menu variety with local culture flexibility
Introduced: 1977
No. of Locations: Over 575 in 47 states and ten foreign countries and territories.
Areas of Operation: United States, Canada, Mexico, South America, Central America, Caribbean, Middle East, Asia and Europe
Types of Location:
BusinessType (corp., franchise, jv): Public Company, Over 520 in the US and Canada are company owned and operated
Size Req’d: Approximately 15,000 to 16,000 square feet
Special Requirements (patio, drive-thru, etc): High traffic, high visibility
Contact Name: Richard M. Frank – Executive Chairman
Michael M. Magusiak – President, CEO
Tiffany B. Kice – Exec Vice President, CFO, Treasurer (investor@cecentertainment.com)
Catherine Olivieri – Sen. Vice President, Human Resources, Risk Mgmt (recruit@cecentertainment.com)
Les L. Lehner – Vice President, Real Estate, Development
Don L. McKechnie – Sen Dir, Development & Real Estate Counsel
Tim Ferrell – National Safety Manager
Michelle Chism – Director, Corporate Comm (972/258-5529 mchism@cecentertainment.com)
REAL ESTATE REPRESENTATIVES:
FRANCHISE REPRESENTATIVES:
PARENT COMPANY: CEC Entertainment LLC, Irving, Texas
Related Chains:
Last Report: Restaurant & QSR Expansion Report #110 Last Update:
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