Texas-based Michaels Stores reorganizes its previous plans to undertake an initial public offering
Michaels Stores Inc has revamped its plans to hold an initial public offering, The Wall Street Journal reported. The Irving, Texas-based retailer of arts-and-crafts issued a withdrawal of its public trading debut on Friday, December 20 which cited a reorganization it undertook in July as the reason for the withdrawal. The reorganization established The Michaels Companies Inc, an indirect parent holding firm, the report said.
An IPO of as much as $500 million in common stock was issued by Michaels Companies, WSJ reported. However, it still needs to determine the timing, number of shares to be sold and the price range for the proposed offering. In a statement, the retailer said joint book-running lead managers for the share sale are JPMorgan and Goldman and Sachs & Co. The joint book runners for the offering are Barclays, Deutsche Bank Securities, BofA Merrill Lynch, Credit Suisse, Morgan Stanley and Wells Fargo Securities.
An IPO of up to $500 million was filed by the company in March last year. However, that public debut was postponed when then-Chief Executive John Menzer had a stroke. He later stepped down from his post. A group private equity firms led by Bain Capital and Balckstone Group took Michaels private seven years ago.
For the third quarter, Michaels posted a 12.7% increase in gross profit to $453 million compared to the same period last year which only generated $402 million, the company said in a statement on December 10.
A retailer of arts, crafts, floral, framing, wall décor and seasonal merchandise for DIY home decorators and hobbyists, it has 1,137 stores in 49 states and Canada as of last month. Aside from Michaels stores, it also had 122 Aaron Brothers stores and has 11 exclusive private brands which include Recollections, Studio Decor, Bead Landing, Creatology, Ashland, Celebrate It, Art Minds, Artist's Loft, Craft Smart, Loops & Threads and Imagin8.