Apollo to Buy Chuck E. Cheese for $1.3B

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Jan. 16 (Bloomberg) –- Bloomberg’s Jason Kelly reports on Apollo’s plan to buy the Chuck E. Cheese restaurant chain. He speaks to Deirdre Bolton on Bloomberg Television’s “Money Moves.” (Source: Bloomberg)

It is struggling and it becomes the white knight.

I has spent more time than i care to admit in chickie cheese.

It's quite an experience.

This is a classic private equity deal.

Cheese -- chucky cheese has fallen on hard times and these companies tend to be very tracked to consumer sentiments will stop they host a lot of birthday parties and those are the things that get cut when a family may be feeling a squeeze during a down economy.

These are the type of things apollo likes.

They like the stress type deals, even a little distressed to go in and buy at the trough and fix it and sell at a couple of years later.

What is apollo going to be able to do with chucky cheese?

Some of these are just -- it's not as if apollo owning that franchise is going to change anything.

We will see exactly what they do.

As much as we talk about these billionaire owners of hybrid equity firms, we don't associate them with pizza.

But he to has been a fairly profitable business historically for ivan equity.

Just last week, ppg bought a number of papa john's franchises.

While the entertainment piece may need a little goosing in the economy, this is clearly something that as the economy rebounds, apollo may be able to invest.

We heard from chucky cheese today that they are planning an expansion with 15 new stores throughout the country this year alone.

There are more than 500 already.

You can't pass a strip mall without seeing that familiar road and, as it were.

Thank you very much.

Be sure to tune into "street

This text has been automatically generated. It may not be 100% accurate.

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