Craft retailer Michaels to go private in $5B deal

first_imgApollo 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.Read moreAC Moore to close all stores Rent relief for retailers is expiring. Now what? Michaels leases space in California 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. SolomontContact E.B. Solomont Share via Shortlink Email Address* Message* Share on FacebookShare on TwitterShare on LinkedinShare via Email Share via Shortlink Full Name* Commercial Real EstateReal Estate InvestmentRetail Real Estate Tagslast_img

Leave a Reply

Your email address will not be published. Required fields are marked *