* Company raises about $472.6 million from IPO
* Prices shares at lower end of the $17-$19/shr range
* IPO values company at up to $3.45 bln
(Updates with company confirming details)
June 26 Michaels Cos Inc said on
Thursday it had raised about $472.6 million in its initial
public offering after pricing shares at $17, the lower end of an
The $17 per share price values the arts and crafts retailer
at up to $3.45 billion.
Michaels' IPO said it had sold all 27.8 million shares on
offer, as it priced at the lower end of the expected range of
$17-$19 per share.
Michaels, which owns several private brands such as
Recollections, Artist's Loft and Loops & Threads, competes with
Hobby Lobby Stores Inc, Jo-Ann Stores Inc and Wal-Mart Stores
Michaels, the largest arts and crafts specialty retailer in
North America, sells scrapbooking and papercraft supplies,
apparel and framing accessories, kids clothing, home and
The retailer, with more than 1,200 stores and about $4.6
billion in sales in fiscal 2013, also offers customized
invitation cards and courses in baking, and beading and jewelry
Michaels reported a rise of 9 percent in net sales to $4.57
billion between 2011-2013. Net income rose 55 percent to $243
million during the same period.
Michaels, which was taken private by Blackstone Group LP
and Bain Capital LP for $6 billion in 2006, filed for an IPO of
up to $500 million in March 2012.
That, however, was postponed after then-Chief Executive John
Menzer had a stroke and stepped down.
Bain Capital and Blackstone Group currently own 93 percent
of the company as Michaels Holdings LLC, which was formed
following the reorganization of Michaels into a holding company
structure in July 2013.
The two private equity firms will own about 80 percent of
the company after the IPO, if underwriters do not exercise their
Michaels said in April it was hit by a security breach of
customer payment cards and about 400,000 cards were potentially
affected by the breach, which occurred between June 26, 2013,
and February 27, 2014.
Michaels, which has about $3.7 billion in debt as of May,
said it plans to use the proceeds from the offering to redeem
$466 million of Holdco notes, issued in July 2013.
The company is expected to debut on the Nasdaq on Friday
under the symbol "MIK".
J.P. Morgan and Goldman Sachs were lead underwriters to the
(Reporting by Neha Dimri in Bangalore; Editing by Ken Wills)