Just three years after emerging from Chapter 11 bankruptcy protection, entertainment chain Chuck E. Cheese is reportedly in talks for what could be an over $1 billion acquisition.
Per Reuters, CEC Entertainment (Chuck E. Cheese’s parent company) is reportedly working with Goldman Sachs to financially structure the company to attract potential buyers, including private equity firms and other entertainment companies, like Dave & Busters.
Citing confidential sources, the outlet reported that the entertainment chain plans to earn $1.2 billion in revenue and $195 million in EBITDA.
Related: Report: Chuck E. Cheese’s Is on the Block
In 2014, Chuck E. Cheese was acquired by Apollo Global Management for $1.3 billion at $54 a share.
Six years later, the company filed for Chapter 11 bankruptcy protection and emerged through a financial restructuring on December 30, 2020, with $705 million of debt paid off.
“Under new ownership, and with the leadership of our new Board, the CEC team is excited to continue delivering memories, entertainment, and pizza for kids and families around the world for generations to come,” CEC Entertainment’s CEO David McKillips said at the time.
There are currently 557 Chuck E. Cheese locations in 47 U.S. states and 10 countries.
A representative for CEC Entertainment did not immediately respond to Entrepreneur‘s request for comment.
