Michaels Cos. (MIK:US), the U.S. arts and crafts retailer, raised $472 million in its U.S. initial public offering, pricing the shares at the low end of the range.
Michaels sold 27.8 million shares for $17 each, according to data compiled by Bloomberg, after offering them for $17 to $19. Bain Capital Partners LLC and Blackstone Group LP, which bought the company in 2006 in a deal valued at $6 billion, will each own about 40 percent of the company after the offering, regulatory filings (MIK:US) show.
Michaels Stores became a publicly held company in 1984, according to its website, with 16 stores located primarily in Texas. It went private in 2006, joining other retailers acquired by Bain Capital between 2004 and 2007 –- a group that included Burlington Stores Inc. and Toys “R” Us Inc.
At $17 a share, Michaels has a market value of about $3.5 billion. The shares will start trading tomorrow, listed on the Nasdaq Stock Market under the symbol MIK. The Irving, Texas-based company will use the money it raised to pay off some of its debt.
Michaels has 1,263 stores under the Michaels and Aaron Brothers brands, and generated about $4.6 billion in sales in the year through Feb. 1, 2014, according to its prospectus. Net sales increased 3.7 percent in the most recent fiscal year, driven by comparable store sales growth and the opening of 56 more outlets, the filing shows. Michaels is profitable, posting $243 million in net income last year, a 22 percent jump from the previous year.
The company says it is the largest arts and crafts specialty retailer in North America based on store count.
JPMorgan Chase & Co., Goldman Sachs Group Inc., Barclays Plc and Deutsche Bank AG managed the IPO.
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