Michaels Gets Capitalization To Go Private
Michaels Stores, Inc. announced on June 30th, 2006 that its Board of Directors had approved a plan that would take the company into private ownership under the capitalization of Bain Capital and The Blackstone Group. The two investment companies will own equal parts of Michaels Stores under the recapitalization plan. Current Michaels shareholders will receive a cash buyout of $44 per share, a significant premium over the trading price of the shares at the time of the plan's announcement.
The transaction is expected to be completed before the end of 2006, subject to regulatory review and stockholder approval.
Said Charles J. Wyly, Jr., Chairman of Michaels Stores, "This transaction delivers outstanding value for all Michaels Stores’ shareholders and represents a powerful endorsement of our Company’s strategy, performance, and business prospects. Over the past decade, the Company has become the nation’s leading arts and crafts retailer and is well-positioned for future growth. We have a proven strategy and attractive assets, including more than 1,000 stores nationwide, a strong and loyal customer base, and capable, experienced management and associates.”
“We are delighted to partner with the Michaels management team to help build on its already strong position in an attractive industry, and capitalize on the significant growth opportunities that lie ahead,” said Matt Levin, a Managing Director at Bain Capital. “Our deep experience in the retail sector reinforces our conviction that Michaels has the best store locations, a broad and attractive assortment of products for crafters of all ages, and a sustainable competitive advantage thanks to smart investments in systems and infrastructure. We look forward to helping Michaels achieve its full long-term potential.”
"Michaels is a best-in-class retailer in a highly attractive category," said Michael Chae, Senior Managing Director of The Blackstone Group. "The Company is very well positioned today, and we believe there is significant opportunity still ahead of it. We look forward to partnering with the Michaels management team to pursue these exciting opportunities."
