Under Apollo Global Management's (NYSE: APO) ownership for less than a year, Chuck E. Cheese is already growing the company franchise by merging with Peter Piper Pizza.
Chuck E. Cheese—a popular restaurant and amusement center chain geared toward children—is facilitating the deal through parent company CEC Entertainment. Peter Piper, an entertainment restaurant franchise in its own right, was put up for sale by owner Acon Investments in July. Terms of the transaction remain undisclosed.
Acon is a unit of TPG Capital LP, a private equity firm based in Fort Worth, Texas. The firm invested in Peter Piper in December 2006 and tapped North Point Advisors to advise the Phoenix-based target throughout the sale process.
Chuck E. Cheese, which was bought out by Apollo in January for $1.3 billion, will now own up to 115 Peter Piper locations, which are primarily across the southwestern region of the U.S., as well as Mexico.
Other restaurant deals have been announced throughout the year. Roark Capital Group's purchase of Carl's Jr. and Hardee's restaurant chains in December.
For more on the restaurant sector, see Finance Finesse: Debt Markets Nourish Restaurant M&A and "Deal Pros Stock Up on Food."