Source: Michaels

Michaels Stores are headed for new ownership.

The Michaels Companies and funds managed by affiliates of Apollo Global Management Inc. revealed plans for an acquisition that will take Michaels private in a $5 billion deal. The Texas-based arts and crafts retailer made a bigger investment in toys beginning in October 2018 with the launch of its Michaels Kids website and an increased toy assortment in its physical stores. At the time, Michaels was going after market share left behind by the closure of Toys “R” Us in the U.S. The company added items from Crayola, LEGO, Play-doh, NERF, Barbie, Hot Wheels, Funko, and more to its product mix and has continued to stock a wider assortment beyond the typical craft and activity sets in the years since.

LEGO Dots at Michaels | Source: Michaels

“Our Michaels strategy and the work that we have done in the past year have led to phenomenal business results, strengthened our core business, and positioned Michaels for long-term sustainable growth,” says Michaels CEO Ashley Buchanan. “We are excited to enter into this new chapter together with Apollo, who shares our strategic vision for Michaels as an omnichannel retailer that offers a one-stop-shop experience for the entire Michaels community. As a private company, we will have the financial flexibility to invest in, expand, and improve our retail and digital platforms.”

The deal is expected to close later this year.