Apollo Global Management’s Acquisition of The Michaels Companies

Ropes & Gray represented The Michaels Companies, while Simpson Thatcher & Bartlett LLP and Paul, Weiss, Rifkind, Wharton & Garrison LLP acted as legal advisors to Apollo in the transaction.

The Michaels Companies (NASDAQ: MIK) and funds managed by affiliates of Apollo Global Management, Inc. (NYSE:APO) have entered into a definitive merger agreement pursuant to which investment funds managed by affiliates of Apollo have agreed to acquire the Company in a transaction that values Michaels at an equity value of approximately $3.3 billion (for a transaction valued at $5.0 billion).

Under the terms of the agreement, which has been unanimously approved by the Michaels Board of Directors, Apollo will commence a tender offer to acquire all outstanding shares of Michaels for $22.00 in cash. The purchase price represents a 47% premium to the closing stock price on February 26, 2021 (the last trading day prior to press speculation about a potential transaction involving Michaels) of $15.00 per share and a 78% premium to the 90-day volume-weighted average price. 

UBS Investment Bank acted as exclusive financial advisor to Michaels. Credit Suisse acted as Apollo’s financial advisor.

The Michaels Companies, Inc. is North America’s largest specialty provider of arts, crafts, framing, floral, wall décor, and seasonal merchandise for Michaels and do-it-yourself home decorators. The Company operates more than 1,275 Michaels stores in 49 states and Canada. 

Apollo is a leading global investment manager with offices in New York, Los Angeles, San Diego, Houston, Bethesda, London, Frankfurt, Madrid, Luxembourg, Mumbai, Delhi, Singapore, Hong Kong, Shanghai and Tokyo, among others.

The Ropes & Gray team that represented The Michaels Companies was led by mergers & acquisitions partners Will Shields and Craig Marcus (both of Boston), Sarah Young (New York) and Will Michener (Boston), and included finance partner Byung Choi, employment, executive compensation & benefits partners Jennifer Rikoski and Megan Bisk, tax partner Elaine Murphy (all of Boston), antitrust partners Michael McFalls (Washington, D.C) and Ruchit Patel (London), IP transactions partner Violetta Kokolus (New York), real estate partner Peter Alpert (Boston), litigation & enforcement partners Ama Adams (Washington, D.C.) and Randall Bodner (Boston), real estate counsel Chrystal LaRoche (New York), finance counsel Alyson Stewart (Boston) and associates Kate Fisher (Boston), Jessica Cooney, Scott Rolnik and Daniel Lim (all of New York).

The Simpson Thacher team advising Apollo included Gregory Klein (Picture), Michael Kaplan, Atif Azher, Daniel Switts, Mark Myott, Claire Hutar, Megan Whitman and Joe Geylin (M&A); Chris Brown and Benjamin Persina (Banking & Credit); Peter Guryan, Kelly Karapetyan and Nathaniel Bronstein (Antitrust); Tristan Brown, Harry N. Hudesman and Garrick Ehlers (ECEB); Lori Lesser and Amber Harezlak (Intellectual Property); Krista McManus (Real Estate); and Russell Light and Jasmine Hay (Tax).

Involved fees earner: Ama Adams – Ropes & Gray; Peter Alpert – Ropes & Gray; Megan Bisk – Ropes & Gray; Randall Bodner – Ropes & Gray; Byung Choi – Ropes & Gray; Jessica Cooney – Ropes & Gray; Katherine Fisher – Ropes & Gray; Violetta Kokolus – Ropes & Gray; Chrystal LaRoche – Ropes & Gray; Daniel Lim – Ropes & Gray; Craig Marcus – Ropes & Gray; Michael McFalls – Ropes & Gray; William Michener – Ropes & Gray; Elaine Murphy – Ropes & Gray; Ruchit Patel – Ropes & Gray; Jennifer Rikoski – Ropes & Gray; Scott Rolnik – Ropes & Gray; William Shields – Ropes & Gray; Alyson Stewart – Ropes & Gray; Sarah Young – Ropes & Gray; Atif Azher – Simpson Thacher & Bartlett; Nathaniel Bronstein – Simpson Thacher & Bartlett; Christopher Brown – Simpson Thacher & Bartlett; Tristan Brown – Simpson Thacher & Bartlett; Garrick Ehlers – Simpson Thacher & Bartlett; Joseph Geylin – Simpson Thacher & Bartlett; Peter Guryan – Simpson Thacher & Bartlett; Amber Harezlak – Simpson Thacher & Bartlett; Jasmine Hay – Simpson Thacher & Bartlett; Harry Hudesman – Simpson Thacher & Bartlett; Claire Hutar – Simpson Thacher & Bartlett; Michael Kaplan – Simpson Thacher & Bartlett; Kelly Karapetyan – Simpson Thacher & Bartlett; Gregory Klein – Simpson Thacher & Bartlett; Lori Lesser – Simpson Thacher & Bartlett; Russell Light – Simpson Thacher & Bartlett; Krista McManus – Simpson Thacher & Bartlett; Mark Myott – Simpson Thacher & Bartlett; Benjamin Persina – Simpson Thacher & Bartlett; Daniel Switts – Simpson Thacher & Bartlett; Megan Whitman – Simpson Thacher & Bartlett;

Law Firms: Ropes & Gray; Simpson Thacher & Bartlett;

Clients: Apollo Global Management; Michaels Companies, Inc.;

Author: Martina Bellini