Michaels Company announced on March 2 that it has come to terms with Apollo Global Management to take part in a $5 billion transaction. In a bid, Apollo will acquire Michaels’ stock at $22 per share in cash. The craft retailer company will again go private; it also went private in 2006 (acquired by Blackstone and Bain Capital).
The company’s performance improved during the pandemic as many people who stayed home in the lockdown purchased Michaels items. Sales in the third quarter jumped 15% year on year, with online sales more than doubled.
Ashley Buchanan, Michaels’ CEO, said the private company is financially prepared to grow while improving retail sales.
The agreement between the two companies is expected to be concluded in the first half of Michaels’ fiscal year.
The North-American-based company owns more than 1,200 stores with almost 44,000 workers.