Simpson Thacher is representing Apollo Global Management in connection with its proposed acquisition of The Michaels Companies, Inc. (NASDAQ: MIK). The parties entered into a definitive merger agreement pursuant to which Apollo will commence a tender offer to acquire all outstanding shares of Michaels for $22 per share in cash. The transaction values Michaels at an equity value of $3.3 billion (for a total transaction value of $5 billion).
The proposed transaction would result in Michaels transitioning from a public company to a privately held company. 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 Michaels’ outstanding common stock to Apollo. The transaction is expected to close in the first half of Michaels’ fiscal year.
The Simpson Thacher team included Gregory Klein, 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 and Lucas Fernandez-Rocha (Real Estate); and Russell Light and Jasmine Hay (Tax).