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Apollo Acquires Chuck E. Cheese in $1B Deal

Justin Sullivan/Getty Images(NEW YORK) -- Despite the screaming children, over-stimulation and highly-publicized guest feuds at Chuck E. Cheese's, the entertainment center is still a popular destination for families. Your local Chuck E. Cheese's location may or may not have lost the magic that you remembered as a kid, but Apollo Global Management is betting big bucks that you will indeed return with your kids.  

The chain, currently owned by CEC Entertainment, announced Thursday that global investment manager Apollo will acquire the child-friendly family dining and entertainment stores for $1.3 billion in a transaction to be completed through a cash payment of $54 per share.  

According to a company statement, Apollo will not only take on all 577 Chuck E. Cheese stores, but it will also assume responsibility for all of the company's outstanding debt.  The CEC Board of directors is hopeful the transaction, when complete, will maximize shareholder value. They are recommending 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."

Copyright 2014 ABC News Radio

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