Chuck E. Cheese (NYSE: CEC) Acquired by Apollo Global Management LLC (NYSE: APO) - Market News | Financial Buzz

Chuck E. Cheese (NYSE: CEC) Acquired by Apollo Global Management LLC (NYSE: APO)

Chuck E. Cheese Chuck E. Cheese (NYSE: CEC) stores are known for their entertainment from robotic and animated characters, arcade-style and skill-oriented games, video games, rides and other interactive activities. The Chuck E Cheese restaurant chain has come to an agreement with Apollo Global Management LLC (NYSE: APO) for the acquisition of the child friendly restaurant.

The acquisition will cost Apollo Global Management about $1.3 billion, including the debt which Chuck. E. Cheese has accumulated. Apollo will pay $54.00 per share of CEC stock that is already a 12% premium to the price it closed on Wednesday which was $48.43.

Apollo Global Management, LLC is a publicly owned investment firm that provides its services to endowment and sovereign wealth funds, as well as other institutional and individual investors. This acquisition is nothing new for Apollo, since its open in the early 1990’s its soul mission is to acquire companies that are in need of help.

Apollo wants to buy the company “fix it and restore it” then hopefully sell it at a much higher price. In November 2012, The McGraw-Hill Companies sold their education division “McGraw-Hill Education” to Apollo Global Management, in a deal accumulating to $2.5 billion, since then the company has shown better than expected results. With this deal Apollo has successfully acquired two restaurant chains, the first being Carl’s Jr.

In a statement given this morning the CEC Executive Chairman Richard Frank said “We are pleased to have reached this agreement with Apollo, which maximizes value for all of our shareholders. This transaction represents the successful conclusion of our extensive review of strategic alternatives”.