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Merger activity decreased last week with five new deals announced and four deals completed. Two of the five deals announced were successful “deals in the works”.
Founded in 1973 in Dallas, Texas, The Michaels Companies is one of America’s largest arts and crafts retailer. I had been tracking the stock for several years when it looked incredibly cheap under $20 in 2017. However the leveraged balance sheet and a difficult retail landscape for brick-and-mortar retailers kept me away.
The stock began a long slow decline and hit a bottom during the pandemic at $1.46. The company saw significant momentum during the COVID-19 lockdown as most Americans who ended up working from home looked for DIY projects to redecorate. The company first went public in 1984. In 2006, Bain Capital and the Blackstone Group, purchased The Michaels Companies for $6 billion, taking it private. The company went public again in the year 2014. Earlier this month, Apollo Global Management expressed interest in acquiring Michaels. This potential deal was successful two days later when Michaels agreed to be acquired by APO in a transaction valued at $5 billion.
You can find all the active deals listed below in our Merger Arbitrage Tool (MAT) that automatically updates itself during market hours.
There were four new deals announced in the Deals in the Works section last week.