Michaels Chairman James Quella said the board believes the offer ‘represents a compelling value to our shareholders.’
Photo: David J. Phillip/Associated Press
Arts and crafts retailer Michaels MIK 22.97% Cos. is going private in a deal that values the company at more than $3 billion.
Private-equity firm Apollo Global Management Inc. APO 1.34% is buying the retailer in a deal valuing Michaels at $3.3 billion. Apollo will offer to buy Michaels’s outstanding shares for $22 a share as part of the deal. The companies said the offer is a 47% premium to where shares closed Feb. 26, the day before there was deal speculation.
Shares Wednesday were up 22% to $22.05 a share.
Michaels Chairman James Quella said in prepared remarks that the board “firmly believes Apollo’s offer represents a compelling value to our shareholders.” The companies valued the transaction at $5.0 billion.
Apollo and Michaels said the deal agreement allows for a 25-day “go-shop” period where Michaels will look at other options, but there is no assurance that process will lead to a better offer.
Write to Allison Prang at [email protected]
Copyright ©2020 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
