Arts-and-crafts retailer Michaels said it has agreed to be acquired by private equity giant Apollo Global Management in a deal that values the company at $3.3 billion.
The going-private transaction values Michaels’ outstanding stock at $22 a share, a 47 percent premium to the closing price on Feb. 26, the last trading day before the media reported that Michael’s was in play, the companies said.
The deal with Apollo — controlled by billionaire Leon Black, who has been weathering a scandal over his ties to dead pedophile Jeffrey Epstein — is valued at a total of $5 billion including debt.
Michaels shares on Wednesday rose $4.08, or 23 percent, to $ 22.10 in early trading.
The arts and crafts retailer has more than 1,200 stores in North America and it had been a go-to stop for consumers looking for something to do during quarantine.
In the fourth quarter, its comparable sales increased by 16.3 percent compared to a year ago.
“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,” Michael’s Chief Executive Ashley Buchanan said in a statement.
“As a private company, we will have financial flexibility to invest in, expand, and improve our retail and digital platforms.”