Shareholders cash in with juicy private equity offer.

 

Michaels, North America’s largest arts and craft retail chain, has been sold to funds manager Apollo Global Management in a deal worth around US$5 billion.

 

The Texas-based company operates more than 1270 stores across the US and Canada. 

 

The private equity firm will pay Michaels shareholders US$22 per share, a 47 per cent premium to the stock’s close earlier this month. 

 

Michaels’ shares were trading at just US$4 a year ago before the COVID-19 pandemic led its sales to jump as people, taking up hobbies while staying at home, rushed out to buy art supplies and scrapbooks.

 

“The company’s impressive growth transformation ... in the unprecedented environment of the pandemic, led to an unsolicited offer to buy the company,” James Quella, Michaels chairman, said.

 

Michaels returned to stock exchange in 2014, after it was taken private by Blackstone Group LP and Bain Capital LP for US$6 billion in 2006.