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03/03/2021

Michaels To Be Acquired In $3.3B Deal

The Michaels Companies will be acquired by global investment firm Apollo in a deal valued at $3.3 billion  

Under the deal, which was unsolicited but has been approved by Michaels’ board of directors, Apollo will commence a tender offer to acquire all outstanding shares of Michaels for $22 per share in cash.

“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 James Quella, chairman of the Michaels board of directors. “Following that offer, the board undertook a comprehensive process to test the market and to evaluate the value maximizing path forward for shareholders. The board of directors, informed by that process, firmly believes Apollo’s offer represents a compelling value to our shareholders.”

“Our Michaels strategy and the work that we have done in the past year have led to phenomenal business results, strengthened our core business and positioned Michaels for long-term sustainable growth,” said Ashley Buchanan, CEO of Michaels. “We are excited to enter into this new chapter together with Apollo, who shares our strategic vision for Michaels as an omnichannel retailer that offers a one-stop-shop experience for the entire Michaels community. As a private company, we will have financial flexibility to invest in, expand, and improve our retail and digital platforms.”

Andrew S. Jhawar, senior partner and head of the retail and consumer group at Apollo, said they see significant opportunity to enhance the Michaels brand, store experience and omnichannel offering.

The deal is expected to close in the first half of Michaels’ fiscal year, upon which the retailer will become a privately held company. A “go-shop” period of 25 calendar days commences today for the retailer to actively solicit, evaluate and potentially enter into negotiations with and provide due diligence access to parties that submit alternative proposals.