NEW YORK (AP) — Arts and crafts retailer Michaels is going private. The retail chain, based in Irving, Texas, said on Wednesday that it has agreed to be acquired by Apollo Global Management Inc for a transaction valued at USD5 billion.
Under the terms of the agreement, approved by Michaels’ board, Apollo will begin a tender offer to buy shares for USD22 each in cash.
The purchase price represents a 47-per-cent premium to the closing stock price on February 26, the last trading day prior to the media speculation about the potential deal.
“The company’s impressive growth transformation, including our financial and operational performance in the unprecedented environment of the pandemic, led to an unsolicited offer to buy the company,” said Chairman of the Michaels Cos Board of Directors James Quella.
Company executives said that by going private, Michaels will have the financial flexibility to invest and improve its retail and online business.