Private equity giant Apollo Global Management is acquiring arts and crafts retailer Michaels in a $5 billion deal.
Apollo will buy all outstanding Michaels shares for $22 each — a 47% premium to Friday’s closing stock price, and well above the stock’s pandemic-era low of around $1. Michaels, which operates more than 1,250 stores in the United States and Canada, was hit hard last spring when the pandemic forced it to shutter locations temporarily. But as restrictions eased over the summer, the arts and crafts industry boomed. “Sales of everything from embroidery kits to drawing accessories to woodworking tools are up over last year as Americans look for new ways to occupy their time and soothe their nerves,” Neil Saunders, managing director of analytics company GlobalData, said.
