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Chuck E. Cheese’s Is Going Public

Chuck E. Cheese’s Is Going Public


The king of kids’ birthday parties is readying an IPO that could be valued at more than $1 billion

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Are you ready to invest in pepperoni pizza and slightly creepy animatronics?

You may remember Chuck E. Cheese’s is expected to announce an IPO valued at over $1 billion.

“We’ve spent a lot of time working on mom and dad and that veto [vote],” Thomas Leverton, Chuck E. Cheese’s CEO, told Nation’s Restaurant News. “Your average kid who comes to Chuck E. wants to come 11 times a year; they come three times a year. The difference between that and the 11 times a year they want to come is the mom and dad veto.”

Chuck E. Cheese’s has also spent the last year upgrading the technology of the four-decades-old pizzeria/arcade with chip-activated cards instead of traditional game tokens. It has also tried to appeal to adults with a new beer and wine menu and healthier meal options.


Chuck E. Cheese Parent to Return to Public Markets

A Chuck E. Cheese restaurant is pictured in Oceanside, Calif.

Jaewon Kang

Chuck E. Cheese is taking the road less traveled back to the public markets.

CEC Entertainment Inc., parent of restaurant chains Chuck E. Cheese and Peter Piper Pizza, said it agreed to combine with special purpose acquisition company Leo Holdings Corp. to go public on the New York Stock Exchange with an initial enterprise value of about $1.4 billion. The transaction is expected to close in the second quarter, after which the new entity will be traded on NYSE.

The valuation represents a multiple of about 7.5 times its adjusted earnings before interest, taxes, depreciation and amortization of roughly $187 million estimated for 2019. The company generated about $896 million in revenue and had adjusted Ebitda of about $175 million in fiscal 2018.

The deal will bring the company back to public markets roughly five years after global buyout firm Apollo Global Management acquired the then-publicly traded family restaurant chain for about $950 million. Apollo will still be the largest shareholder in CEC, which will change its name to Chuck E. Cheese Brands Inc. once the transaction closes.

The Irving, Texas-based chain opened shop as a single store in San Jose in 1977. CEC gained popularity with pizza parties, arcade games and its Chuck E. Cheese mascot, but struggled to stay innovative.


Chuck E. Cheese Parent to Return to Public Markets

A Chuck E. Cheese restaurant is pictured in Oceanside, Calif.

Jaewon Kang

Chuck E. Cheese is taking the road less traveled back to the public markets.

CEC Entertainment Inc., parent of restaurant chains Chuck E. Cheese and Peter Piper Pizza, said it agreed to combine with special purpose acquisition company Leo Holdings Corp. to go public on the New York Stock Exchange with an initial enterprise value of about $1.4 billion. The transaction is expected to close in the second quarter, after which the new entity will be traded on NYSE.

The valuation represents a multiple of about 7.5 times its adjusted earnings before interest, taxes, depreciation and amortization of roughly $187 million estimated for 2019. The company generated about $896 million in revenue and had adjusted Ebitda of about $175 million in fiscal 2018.

The deal will bring the company back to public markets roughly five years after global buyout firm Apollo Global Management acquired the then-publicly traded family restaurant chain for about $950 million. Apollo will still be the largest shareholder in CEC, which will change its name to Chuck E. Cheese Brands Inc. once the transaction closes.

The Irving, Texas-based chain opened shop as a single store in San Jose in 1977. CEC gained popularity with pizza parties, arcade games and its Chuck E. Cheese mascot, but struggled to stay innovative.


Chuck E. Cheese Parent to Return to Public Markets

A Chuck E. Cheese restaurant is pictured in Oceanside, Calif.

Jaewon Kang

Chuck E. Cheese is taking the road less traveled back to the public markets.

CEC Entertainment Inc., parent of restaurant chains Chuck E. Cheese and Peter Piper Pizza, said it agreed to combine with special purpose acquisition company Leo Holdings Corp. to go public on the New York Stock Exchange with an initial enterprise value of about $1.4 billion. The transaction is expected to close in the second quarter, after which the new entity will be traded on NYSE.

The valuation represents a multiple of about 7.5 times its adjusted earnings before interest, taxes, depreciation and amortization of roughly $187 million estimated for 2019. The company generated about $896 million in revenue and had adjusted Ebitda of about $175 million in fiscal 2018.

The deal will bring the company back to public markets roughly five years after global buyout firm Apollo Global Management acquired the then-publicly traded family restaurant chain for about $950 million. Apollo will still be the largest shareholder in CEC, which will change its name to Chuck E. Cheese Brands Inc. once the transaction closes.

The Irving, Texas-based chain opened shop as a single store in San Jose in 1977. CEC gained popularity with pizza parties, arcade games and its Chuck E. Cheese mascot, but struggled to stay innovative.


Chuck E. Cheese Parent to Return to Public Markets

A Chuck E. Cheese restaurant is pictured in Oceanside, Calif.

Jaewon Kang

Chuck E. Cheese is taking the road less traveled back to the public markets.

CEC Entertainment Inc., parent of restaurant chains Chuck E. Cheese and Peter Piper Pizza, said it agreed to combine with special purpose acquisition company Leo Holdings Corp. to go public on the New York Stock Exchange with an initial enterprise value of about $1.4 billion. The transaction is expected to close in the second quarter, after which the new entity will be traded on NYSE.

The valuation represents a multiple of about 7.5 times its adjusted earnings before interest, taxes, depreciation and amortization of roughly $187 million estimated for 2019. The company generated about $896 million in revenue and had adjusted Ebitda of about $175 million in fiscal 2018.

The deal will bring the company back to public markets roughly five years after global buyout firm Apollo Global Management acquired the then-publicly traded family restaurant chain for about $950 million. Apollo will still be the largest shareholder in CEC, which will change its name to Chuck E. Cheese Brands Inc. once the transaction closes.

The Irving, Texas-based chain opened shop as a single store in San Jose in 1977. CEC gained popularity with pizza parties, arcade games and its Chuck E. Cheese mascot, but struggled to stay innovative.


Chuck E. Cheese Parent to Return to Public Markets

A Chuck E. Cheese restaurant is pictured in Oceanside, Calif.

Jaewon Kang

Chuck E. Cheese is taking the road less traveled back to the public markets.

CEC Entertainment Inc., parent of restaurant chains Chuck E. Cheese and Peter Piper Pizza, said it agreed to combine with special purpose acquisition company Leo Holdings Corp. to go public on the New York Stock Exchange with an initial enterprise value of about $1.4 billion. The transaction is expected to close in the second quarter, after which the new entity will be traded on NYSE.

The valuation represents a multiple of about 7.5 times its adjusted earnings before interest, taxes, depreciation and amortization of roughly $187 million estimated for 2019. The company generated about $896 million in revenue and had adjusted Ebitda of about $175 million in fiscal 2018.

The deal will bring the company back to public markets roughly five years after global buyout firm Apollo Global Management acquired the then-publicly traded family restaurant chain for about $950 million. Apollo will still be the largest shareholder in CEC, which will change its name to Chuck E. Cheese Brands Inc. once the transaction closes.

The Irving, Texas-based chain opened shop as a single store in San Jose in 1977. CEC gained popularity with pizza parties, arcade games and its Chuck E. Cheese mascot, but struggled to stay innovative.


Chuck E. Cheese Parent to Return to Public Markets

A Chuck E. Cheese restaurant is pictured in Oceanside, Calif.

Jaewon Kang

Chuck E. Cheese is taking the road less traveled back to the public markets.

CEC Entertainment Inc., parent of restaurant chains Chuck E. Cheese and Peter Piper Pizza, said it agreed to combine with special purpose acquisition company Leo Holdings Corp. to go public on the New York Stock Exchange with an initial enterprise value of about $1.4 billion. The transaction is expected to close in the second quarter, after which the new entity will be traded on NYSE.

The valuation represents a multiple of about 7.5 times its adjusted earnings before interest, taxes, depreciation and amortization of roughly $187 million estimated for 2019. The company generated about $896 million in revenue and had adjusted Ebitda of about $175 million in fiscal 2018.

The deal will bring the company back to public markets roughly five years after global buyout firm Apollo Global Management acquired the then-publicly traded family restaurant chain for about $950 million. Apollo will still be the largest shareholder in CEC, which will change its name to Chuck E. Cheese Brands Inc. once the transaction closes.

The Irving, Texas-based chain opened shop as a single store in San Jose in 1977. CEC gained popularity with pizza parties, arcade games and its Chuck E. Cheese mascot, but struggled to stay innovative.


Chuck E. Cheese Parent to Return to Public Markets

A Chuck E. Cheese restaurant is pictured in Oceanside, Calif.

Jaewon Kang

Chuck E. Cheese is taking the road less traveled back to the public markets.

CEC Entertainment Inc., parent of restaurant chains Chuck E. Cheese and Peter Piper Pizza, said it agreed to combine with special purpose acquisition company Leo Holdings Corp. to go public on the New York Stock Exchange with an initial enterprise value of about $1.4 billion. The transaction is expected to close in the second quarter, after which the new entity will be traded on NYSE.

The valuation represents a multiple of about 7.5 times its adjusted earnings before interest, taxes, depreciation and amortization of roughly $187 million estimated for 2019. The company generated about $896 million in revenue and had adjusted Ebitda of about $175 million in fiscal 2018.

The deal will bring the company back to public markets roughly five years after global buyout firm Apollo Global Management acquired the then-publicly traded family restaurant chain for about $950 million. Apollo will still be the largest shareholder in CEC, which will change its name to Chuck E. Cheese Brands Inc. once the transaction closes.

The Irving, Texas-based chain opened shop as a single store in San Jose in 1977. CEC gained popularity with pizza parties, arcade games and its Chuck E. Cheese mascot, but struggled to stay innovative.


Chuck E. Cheese Parent to Return to Public Markets

A Chuck E. Cheese restaurant is pictured in Oceanside, Calif.

Jaewon Kang

Chuck E. Cheese is taking the road less traveled back to the public markets.

CEC Entertainment Inc., parent of restaurant chains Chuck E. Cheese and Peter Piper Pizza, said it agreed to combine with special purpose acquisition company Leo Holdings Corp. to go public on the New York Stock Exchange with an initial enterprise value of about $1.4 billion. The transaction is expected to close in the second quarter, after which the new entity will be traded on NYSE.

The valuation represents a multiple of about 7.5 times its adjusted earnings before interest, taxes, depreciation and amortization of roughly $187 million estimated for 2019. The company generated about $896 million in revenue and had adjusted Ebitda of about $175 million in fiscal 2018.

The deal will bring the company back to public markets roughly five years after global buyout firm Apollo Global Management acquired the then-publicly traded family restaurant chain for about $950 million. Apollo will still be the largest shareholder in CEC, which will change its name to Chuck E. Cheese Brands Inc. once the transaction closes.

The Irving, Texas-based chain opened shop as a single store in San Jose in 1977. CEC gained popularity with pizza parties, arcade games and its Chuck E. Cheese mascot, but struggled to stay innovative.


Chuck E. Cheese Parent to Return to Public Markets

A Chuck E. Cheese restaurant is pictured in Oceanside, Calif.

Jaewon Kang

Chuck E. Cheese is taking the road less traveled back to the public markets.

CEC Entertainment Inc., parent of restaurant chains Chuck E. Cheese and Peter Piper Pizza, said it agreed to combine with special purpose acquisition company Leo Holdings Corp. to go public on the New York Stock Exchange with an initial enterprise value of about $1.4 billion. The transaction is expected to close in the second quarter, after which the new entity will be traded on NYSE.

The valuation represents a multiple of about 7.5 times its adjusted earnings before interest, taxes, depreciation and amortization of roughly $187 million estimated for 2019. The company generated about $896 million in revenue and had adjusted Ebitda of about $175 million in fiscal 2018.

The deal will bring the company back to public markets roughly five years after global buyout firm Apollo Global Management acquired the then-publicly traded family restaurant chain for about $950 million. Apollo will still be the largest shareholder in CEC, which will change its name to Chuck E. Cheese Brands Inc. once the transaction closes.

The Irving, Texas-based chain opened shop as a single store in San Jose in 1977. CEC gained popularity with pizza parties, arcade games and its Chuck E. Cheese mascot, but struggled to stay innovative.


Chuck E. Cheese Parent to Return to Public Markets

A Chuck E. Cheese restaurant is pictured in Oceanside, Calif.

Jaewon Kang

Chuck E. Cheese is taking the road less traveled back to the public markets.

CEC Entertainment Inc., parent of restaurant chains Chuck E. Cheese and Peter Piper Pizza, said it agreed to combine with special purpose acquisition company Leo Holdings Corp. to go public on the New York Stock Exchange with an initial enterprise value of about $1.4 billion. The transaction is expected to close in the second quarter, after which the new entity will be traded on NYSE.

The valuation represents a multiple of about 7.5 times its adjusted earnings before interest, taxes, depreciation and amortization of roughly $187 million estimated for 2019. The company generated about $896 million in revenue and had adjusted Ebitda of about $175 million in fiscal 2018.

The deal will bring the company back to public markets roughly five years after global buyout firm Apollo Global Management acquired the then-publicly traded family restaurant chain for about $950 million. Apollo will still be the largest shareholder in CEC, which will change its name to Chuck E. Cheese Brands Inc. once the transaction closes.

The Irving, Texas-based chain opened shop as a single store in San Jose in 1977. CEC gained popularity with pizza parties, arcade games and its Chuck E. Cheese mascot, but struggled to stay innovative.