December 5, 2023

Reusable shopping bags are displayed under a cash register in a Michaels craft store in Cincinnati, Ohio.

Luke Sharrett | Bloomberg | Getty Images

Artisan Michaels Companies announced Wednesday that it has agreed to be bought by private equity firm Apollo Global Management, valued at $ 5 billion.

Apollo will purchase all of Michaels’ outstanding shares in a tender offer for $ 22 per share. This represents a premium of 47% over the closing price on Friday, the day before speculation about the deal was published in the media. The equity value of the deal is $ 3.3 billion.

Michaels said the terms of the deal were unanimously approved by its board of directors.

The companies said there will be a 25-day “go-shop” period starting Wednesday during which Michaels can consider other options, but that process won’t necessarily translate into a better deal.

Michaels, a public company since 2014, has over 1,200 branches in North America and employs around 44,000 people.

Michaels shares rose by more than 9% in premarket trading. The stock is up more than 366% in the past 12 months as the market closed on Tuesday. Michaels has a market cap of $ 2.66 billion.

Read the full press release here.

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