(Updates state of registration documents in paragraph four)
By Greg Roumeliotis and Olivia Oran
June 12 The initial public offering of Michaels
Cos Inc, which has been planned for the last two years, will
finally take place this summer, according to people familiar
with the matter.
The U.S. crafts retailer is likely to begin marketing shares
to potential investors in the next several weeks, according to
the sources, who declined to be named because the matter is
Michaels, which had been publicly traded and was taken
private by Blackstone Group LP and Bain Capital LP for $6
billion in 2006, initially filed for an IPO of up to $500
million in March 2012. That was postponed after then-Chief
Executive Officer John Menzer had a stroke and stepped down.
The Texas-based company withdrew the IPO last December after
going through a reorganization, immediately refiled under a new
name and then updated its registration documents in May.
Michaels and Bain could not be reached immediately for
comment. Blackstone declined to comment.
Michaels confirmed in April it was hit by a security breach
of customer payment cards. The company said about 400,000 cards
were potentially affected by the breach, which occurred between
June 26, 2013 and February 27, 2014.
The company doesn't expect the data breach to have an impact
on the IPO, the sources said.
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 had 1,262 stores as of May 3, and approximately
$4.6 billion in sales in fiscal 2013.
JPMorgan Chase & Co and Goldman Sachs are
leading the IPO.
(Reporting by Greg Roumeliotis and Olivia Oran in New York;
Editing by Jeffrey Benkoe and Jonathan Oatis)