Michael and a private equity firm, named Apollo Global Management, have entered into a merger agreement where Michaels will be acquired for $5 billion.
All of the Michaels' board members approved the merger with the private equity firm, which is scheduled to close in the first half of the fiscal year. The acquisition will be financed both with equity from Apollo Global Management and debt provided by Credit Suisse, Barclays, RBC Capital Markets, Deutsche Bank Wells Fargo and more.
"We are excited to enter into this new chapter together with Apollo, who shares our strategic vision for Michaels as an omnichannel retailer that offers a one-stop-shop experience for the entire Michaels community. As a private company, we will have financial flexibility to invest in, expand, and improve our retail and digital platforms," said Ashley Buchanan the CEO of Michaels.
Michaels will now have a 25-day period to evaluate other potential offers and will have the right to end its agreement with Apollo Global Management if it is able to secure a better offer.
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