Apollo Global Management has reportedly hired a group of investment banks and advisors to prepare for the sale of its Chuck E. Cheese business.
The firm hired investment banks Deutsche Bank AG and Credit Suisse Group AG to solicit bids for a sale of $2 billion or more; and if offers come in at less than that figure, Jefferies and Morgan Stanley have been enlisted to prepare Chuck E. Cheese for a potential IPO, Reuters first reported.
The asset management firm acquired CEC Entertainment and its 577 Chuck E. Cheese restaurants for $1.3 billion, including the assumption of debt, in early 2014.
Rising minimum wages and changes to overtime provisions have have strained many casual restaurants across the US, a researcher with the National Restaurant Association recently told Agri Investor.
Chuck E. Cheese’s video game and family friendly environment has served to differentiate the business in the past, but it has more recently expanded its alcohol offerings to broaden its appeal. The final decision on the exit strategy is several months away, according to the report.