Chuck E. Cheese, the restaurant chain that emerged from chapter three years in the past, is exploring a sale amid acquisition curiosity, based on individuals accustomed to the matter.
The Irving, Texas-based firm, identified for its arcade video games and rat mascot Charles Leisure “Chuck E.” Cheese, is working with funding financial institution Goldman Sachs on an public sale course of that would appeal to personal fairness corporations in addition to friends reminiscent of Dave & Busters Leisure, the sources stated.
CEC Leisure, the guardian firm of Chuck E. Cheese, has informed potential acquirers it expects to generate round 1.2 billion in income and $195 million in earnings earlier than curiosity, taxes, depreciation and amortization (EBITDA) this yr, the sources added. Primarily based on the valuation metrics of its friends, the corporate may fetch nicely over $1 billion in a sale, based on the sources.
The sources cautioned that no deal is for certain and requested to not be recognized as a result of the matter is confidential. Goldman Sachs declined to remark. CEC Leisure and Dave & Busters didn’t instantly reply to requests for remark.
Non-public fairness agency Apollo World Administration acquired Chuck E. Cheese in 2014 for $1.three billion, together with debt. The corporate filed for chapter in June 2020 after the onset of the COVID-19 pandemic weighed on its enterprise.
Chuck E. Cheese emerged from chapter in December 2020 after possession was handed to its collectors, together with funding corporations Monarch Various Capital and Redan Advisors, who agreed to remove $705 million in debt from its stability sheet.
The corporate and its franchisees function almost 600 Chuck E. Cheese places and over 120 Peter Piper Pizza places globally. It additionally owns digital kitchen idea Pasqually’s Pizza & Wings.