Craft retailer Michaels files paperwork for IPO
Arts and crafts retailer Michaels files to go public, will use proceeds to pay back debt
IRVING, Texas (AP) -- Michaels Companies, which owns namesake arts and crafts retailer Michaels and framing business Aaron Brothers, filed paperwork Friday for a potential public offering of its common stock.
The company, based in Irving, Texas, operates 1,259 stores nationwide and generated revenue of $4.41 billion in 2012. Michaels said the timing, number of shares to be sold and the price range for the proposed offering have not yet been determined.
The company was created in July under a reorganization of Michaels Stores Inc. As a result, paperwork filed earlier for a proposed IPO of Michaels Stores was withdrawn.
Michaels was taken private in 2006 by Bain Capital Partners LLC and The Blackstone Group. Following the offering, they will continue to own a controlling stake. The company plans to use the proceeds to buy back debt.
J.P. Morgan and Goldman, Sachs & Co. will act as joint book-running lead managers for the offering. Barclays, Deutsche Bank Securities, BofA Merrill Lynch, Credit Suisse, Morgan Stanley and Wells Fargo Securities will act as joint book runners.
