Reusable bags are displayed under a checkout counter at a Michael’s craft store in Cincinnati, Ohio.
Luke Sharrett | Bloomberg | Getty Images
Artisan Michael’s company said on Wednesday that it had agreed to be bought by the venture capital company Apollo Global Management in a deal valued at $ 5 billion.
Apollo will acquire all outstanding Michaels shares for $ 22 per share in an offer. This corresponds to a premium of 47% to the final price on Friday, the day before speculation about the deal was published in the media. The transaction’s net asset value is $ 3.3 billion.
Michaels said the terms of the deal were unanimously approved by the board.
The companies said there will be a 25-day “go-shop” period, starting on Wednesday, where Michaels will be able to maintain other options, but this process will not necessarily lead to a better offer.
Michaels, which has been a public company since 2014, has over 1,200 stores in North America and approximately 44,000 employees.
Michaels shares increased more than 9% in pre-market trading. The stock has risen more than 366% in the last 12 months, since Tuesday’s market closed. Michaels has a market capitalization of $ 2.66 billion.
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