Craft retailer Michaels to go private in $5B deal

Chain has nearly 1,300 stores in North America

National /
Mar.March 04, 2021 10:00 AM
Apollo Global Management will take over craft retailer Michaels in a deal that values the company at $3.3 billion. (Wikipedia Commons, iStock)

Apollo Global Management will take over craft retailer Michaels in a deal that values the company at $3.3 billion. (Wikipedia Commons, iStock)

Retailer Michaels has something new on the craft table: a takeover deal from Apollo Global Management.

Amid a DIY boom spurred by the pandemic, the private equity firm said it will take the retailer private in a deal that values Michaels at $3.3 billion, the New York Times reported. The transaction value is $5 billion, the companies said in a statement.

Based in Texas, Michaels has 1,275 stores in North America. With more people doing craft projects while stuck at home, its stock has skyrocketed over the past year. Previously, Amazon’s growth put pressure on the retailer, which like others had been forced to shutter some stores.

In a statement, Michaels chairman James Quella said the deal made sense and offered “compelling value” to shareholders. Per the terms of the deal, Apollo will pay $22 per share, a 47 percent premium from $15 per share on Feb. 26, when a potential arrangement was first reported.

The deal includes a 25-day “go-shop” period, which allows other bidders to submit superior offers, Bloomberg News reported.

Earlier this week, an Apollo-backed lender said it would buy Paper Source Inc., a stationery and craft store, after it filed for bankruptcy. The 158-store chain bought 30 stores from rival Papyrus last year, but weeks later the pandemic forced locations to close for several months.

Apollo is also partnering with Vici Properties Inc. to buy the Las Vegas Sands Corp.’s real estate portfolio for $6.25 billion.

[NYT, Bloomberg] — E.B. Solomont





    Related Articles

    arrow_forward_ios
    1135 Lexington Avenue and Nir Meir (Google Maps, iStock)
    Judge rules against Nir Meir in HFZ’s $19M default case
    Judge rules against Nir Meir in HFZ’s $19M default case
    Eric Adams (Getty, iStock/Illustration by Alexis Manrodt for The Real Deal)
    Brooklyn developers, lobbyists funneled money to Eric Adams nonprofit
    Brooklyn developers, lobbyists funneled money to Eric Adams nonprofit
    The Assemblage occupies the top 13 floors of the building. (Prodigy, Assemblage)
    Prodigy-backed co-working facility facing foreclosure
    Prodigy-backed co-working facility facing foreclosure
    TIG founding principal Elliott Ingerman and the Textile Building at 295 Fifth Avenue (LinkedIn, Google Maps)
    Fifth Avenue’s Textile Building to get $350M makeover
    Fifth Avenue’s Textile Building to get $350M makeover
    (Tropicana Las  Vegas via Facebook, Bally's Corp)
    Bally’s buys Las Vegas’ Tropicana casino for $150M
    Bally’s buys Las Vegas’ Tropicana casino for $150M
    Macerich president Edward Coppola and a rendering of the redevelopment in Pheonix (Macerich/City of Pheonix)
    Macerich unloads Phoenix mall for $100M; redevelopment awaits
    Macerich unloads Phoenix mall for $100M; redevelopment awaits
    Hammerson CEO Rita-Rose Gagne and Brookfield's Bruce Flatt. (Hammerson, Brookfield, Getty)
    Brookfield’s US malls are struggling. Now it’s buying some in Europe
    Brookfield’s US malls are struggling. Now it’s buying some in Europe
    Jake’s 58 (Google Maps, iStock)
    Suffolk OTB to acquire Jake’s 58 in $120M deal
    Suffolk OTB to acquire Jake’s 58 in $120M deal
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...