Baker Botts represented Michaels Stores in the acquisition of retail stores and related assets from Competitor A.C. Moore
Dallas-based The Michaels Companies, Inc. (NASDAQ:MIK) announced its agreement to assume leases for approximately 40 retail store locations and acquire related trademarks, domain names and other intellectual property assets from A.C. Moore Arts & Crafts, Inc. in a complex transaction in which Michaels agreed to pay $58 million, subject to certain purchase price adjustments, for the subject assets. A.C. Moore, an arts and crafts retailer that operates more than 145 stores from Maine to Florida in the eastern U.S., simultaneously announced its plans to liquidate its retail stores. As part of the transaction, Michaels arranged for an unaffiliated REIT to acquire from A.C. Moore a $30 million distribution center/warehouse facility located in Berlin, New Jersey, with Michaels simultaneously entering into a long-term lease for that facility.
This series of transactions will allow Michaels to enhance its position as the largest arts and crafts retailer in North America.
The Michaels Companies, Inc. is North America’s largest specialty provider of arts, crafts, framing, floral, wall décor, and seasonal merchandise. The Company operates more than 1,260 Michaels stores in 49 states and Canada. Additionally, the Company serves customers through a variety of digital platforms including Michaels.com, consumercrafts.com and aaronbrothers.com. The Michaels Companies, Inc., also owns Artistree, a manufacturer of high quality custom and specialty framing merchandise, and Darice, a premier wholesale distributor in the craft, gift and decor industry.
Baker Botts represented Michaels in these transactions, along with Michaels’ in-house legal team which consisted of Navin Rao, Asifa Sheikh and Jennifer Raibon. The Baker Botts deal team was as follows: Don McDermett (Picture), Jon Platt, Michelle Matthews, Ray Palmer, Jacqueline Scioli and Sara Jones; Cynthia Cole; Steve Marcus and Jordan Hahn; Matthew Hunsaker; Samir Bhavsar, Paul Reilly and Elizabeth Rucki; Connie Taylor; Paul Cuomo and Michael Bodosky; Omar Alaniz.
Involved fees earner: Omar Alaniz – Baker Botts; Michael Bodosky – Baker Botts; Cynthia Cole – Baker Botts; Paul Cuomo – Baker Botts; Jordan Hahn – Baker Botts; Matt Hunsaker – Baker Botts; Stephen Marcus – Baker Botts; Michelle Matthews – Baker Botts; Don McDermett – Baker Botts; Jonathan Platt – Baker Botts; Paul Reilly – Baker Botts; Elizabeth Rucki – Baker Botts; Jacqueline Scioli – Baker Botts; Consuella Simmons Taylor – Baker Botts;
Law Firms: Baker Botts;
Clients: Michaels Companies, Inc.;