Arts, crafts retailer in deal to go private
NEW YORK -- Arts and crafts retailer Michaels is going private.
The retail chain, based in Irving, Texas, said Wednesday that it has agreed to be acquired by Apollo Global Management Inc. for a transaction valued at $5 billion.
Under the terms of the agreement, approved by Michaels' board, Apollo will begin a tender offer to buy shares for $22 each in cash. The purchase price represents a 47% premium to the closing stock price on Feb. 26, the last trading day before the media speculation about the potential deal.
The shares rose 22%, or $4, to close Wednesday at $22.19.
"The company's impressive growth transformation, including our financial and operational performance in the unprecedented environment of the pandemic, led to an unsolicited offer to buy the company," said James Quella, chairman of the Michaels Cos. board of directors.
Company executives said that by going private, Michaels will have the financial flexibility to invest and improve its retail and online business.
The company operates more than 1,275 Michaels stores in 49 states and Canada.
-- The Associated Press
Texas cinema chain files for bankruptcy
The Alamo Drafthouse theater chain, which operates some 40 sites across the country and is known for its curated screenings, elevated food and drink options and over-the-top fan interactions, announced Wednesday that it was filing for Chapter 11 bankruptcy protection.
As part of the process, the company will sell its assets to its senior lender group, including Altamont Capital Partners, affiliates of Fortress Investment Group and the company's founder, Tim League.
The company said that the move would provide the company with the financing needed to weather the pandemic. Many theaters across the country have been forced to close, at least temporarily, and movie studios have delayed their blockbuster releases.
Austin, Texas-based Alamo is one of the most prominent movie chains to seek Chapter 11 protection during the pandemic.
Alamo's downtown Austin cinema, a 90-year-old movie palace known as the Ritz, will close permanently, along with sites in Kansas City, Mo., and New Braunfels, Texas.
-- The New York Times
Arkansas Index rises 6.25. ends at 558.13
The Arkansas Index, a price-weighted index that tracks the largest public companies based in the state, closed Wednesday at 558.13, up 6.25.
"A rapid rise in U.S. Treasury yields has pressured technology stocks as investors reassess lofty valuations while energy shares rose in advance of [today's] OPEC+ meeting," said Leon Lants, managing director at Stephens Inc.
The index was developed by Bloomberg News and the Democrat-Gazette with a base value of 100 as of Dec. 30, 1997.