Chuck E. Cheese Abruptly Cancels a $1.4 Billion Deal to Go Public
Kids' entertainment pizza chain Chuck E. Cheese won't be returning to the public markets after all. The chain's private equity owner Apollo Global Management (NYSE: APO) and Leo Holdings (NYSE: LHC) canceled what was supposed to be a $1.4 billion reverse merger at the last minute.
Although no explanation was given by either side, some analysts speculated the proposed value of the deal may have been too high. The Dallas Morning News quoted Pacific Management Consulting Group analyst John Gordon as saying, "If we go with the simplest explanation first, it's that the offering price that was being asked was too high for the investor demand."
Image source: Chuck E. Cheese.
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