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Michaels Co. Agrees To Be Acquired By Apollo Global Management For Equity Value Of About $3.3 Bln

Michaels Companies (MIK) said Wednesday that it agreed to be acquired by funds managed by affiliates of Apollo Global Management Inc. (APO) for an equity value of about $3.3 billion. The transaction valuing the company at $5.0 billion.

As per the terms of the deal, Apollo will commence a tender offer to acquire all outstanding shares of Michaels for $22.00 per share in cash. The purchase price represents a 47% premium to the closing stock price on February 26, 2021 of $15.00 per share.

The closing of the transaction is subject to customary closing conditions, including the expiration or termination of certain regulatory periods and the tender of shares representing at least a majority of the Company's outstanding common stock to Apollo, and is expected to close in Michaels' first half of the Company's fiscal year.

The merger agreement provides for a "go-shop" period, during which Michaels - with the assistance of UBS Investment Bank, its exclusive financial advisor - will actively solicit, evaluate and potentially enter into negotiations with and provide due diligence access to parties that submit alternative proposals.

The go-shop period is 25 calendar days, commencing today. Michaels will have the right to terminate the merger agreement to enter into a superior proposal subject to the conditions and procedures specified in the merger agreement.

Upon the completion of the transaction, Michaels will become a privately held company and shares of MIK common stock will no longer be listed on any public market.

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