Apollo Global Management announced on Wednesday that it will acquire art dealer Michaels in a deal valued at $ 5 billion.
The acquisition is a bet that Michaels can continue to advance the wave of enthusiasm for artwork spurred on by Americans sitting at home during the pandemic. The company also invested in its digital business and started delivery on the same day as on the same day.
Shares of the retailer, which has more than 1,200 stores in North America and about 44,000 employees, have risen nearly 300 percent in the past year, giving a market capitalization of about $ 2.3 billion.
The agreement will put Michaels back in the hands of private equity after seven years as a public company. The private equity firms Bain Capital and Blackstone acquired Michaels in 2006 and took them as private in a deal worth more than $ 6 billion. The company returned to the public markets in 2014 at a market value of approximately $ 3.5 billion. Bain is still a major shareholder.
According to two people familiar with the situation, at least one other private equity firm was interested in acquiring Michaels.