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.

About the author

James Zahn

James Zahn

James Zahn, AKA The Rock Father, is Editor-in-Chief of The Toy Book, a Senior Editor at The Toy Insider and The Pop Insider, and Editor of The Toy Report, The Toy Book‘s weekly industry newsletter. As a pop culture and toy industry expert, Zahn has appeared as a panelist and guest at events including Comic-Con International: San Diego (SDCC) Wizard World Chicago, and the ASTRA Marketplace & Academy. Zahn has more than 30 years of experience in the entertainment, retail, and publishing industries, and is frequently called upon to offer expert commentary for publications such as Forbes, Marketwatch, the Wall Street Journal, the New York Times, USA Today, Reuters, the Washington Post, and more. James has appeared on History Channel’s Modern Marvels, was interviewed by Larry King and Anderson Cooper, and has been seen on Yahoo! Finance, CNN, CNBC, FOX Business, NBC, ABC, CBS, WGN, The CW, and more. Zahn joined the Adventure Media & Events family in 2016, initially serving as a member of the Parent Advisory Board after penning articles for the Netflix Stream Team, Fandango Family, PBS KIDS, Sprout Parents (now Universal Kids), PopSugar, and Chicago Parent. He eventually joined the company full time as a Senior Editor and moved up the ranks to Deputy Editor and Editor-in-Chief.