Who Owns Michaels Companies Company?

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Who Owns Michaels Companies?

Understanding a company's ownership is key to grasping its strategic direction. A major shift for The Michaels Companies, Inc. happened in April 2021 when Apollo Global Management, Inc. acquired it for $5 billion, moving it from public to private ownership.

This transition placed the craft retailer under the direct management of a prominent private equity firm, altering its operational landscape significantly.

Michaels, a leader in arts and crafts, operates over 1,300 stores across the U.S. and Canada, alongside its online presence. The company's history dates back to 1973, and by 2020, it reported sales of approximately $5.362 billion. For a deeper dive into its market positioning, consider a Michaels Companies PESTEL Analysis.

The Michaels Companies, Inc. began in 1973 when Michael J. Dupey transformed a small five and dime store in Dallas, Texas, into an arts and crafts retailer. This initial store, named 'Michaels,' was part of Dupey Enterprises, Inc., established in 1962, which grew the concept into a modest chain of 11 stores primarily in Texas.

Founding Vision

Michael J. Dupey's entrepreneurial spirit led to the creation of the first Michaels store. His initial venture focused on arts and crafts, setting the stage for future expansion.

Early Expansion

Dupey Enterprises, Inc. successfully grew the initial concept into a small chain of 11 stores. This early growth was concentrated within Texas.

Wyly Brothers' Acquisition

In 1982, businessman Sam Wyly acquired a controlling stake in the company. This marked a significant turning point in Michaels' ownership history.

Strategic Sale

The 11-store chain was sold in 1983 to Peoples Restaurants, Inc., a company led by Sam and Charles J. Wyly, Jr.

Public Offering

Michaels first became a publicly traded entity in 1984. The company went public on NASDAQ under the parent company, The Michaels Companies.

Founder's Later Ventures

Following the sale, Michael J. Dupey established MJ Designs, which was later acquired by The Michaels Companies itself.

The early ownership structure of The Michaels Companies, Inc. saw a pivotal transition in 1982 when Sam Wyly secured a controlling interest in the then 11-store operation. This acquisition was solidified in 1983 when Dupey Enterprises sold the chain to Peoples Restaurants, Inc., a company primarily controlled by the Wyly brothers. This period initiated rapid expansion across the United States and into Canada, laying the foundation for the company's future growth. In 1984, the company made its debut on NASDAQ under the newly formed parent entity, The Michaels Companies, which by then operated 16 stores. Specific details regarding the initial equity distribution among founders or early investors are not publicly available beyond the controlling stake held by the Wyly brothers.

Key Ownership Milestones

The ownership journey of Michaels began with its founder, Michael J. Dupey, and saw a significant shift with the acquisition by the Wyly brothers. This transition paved the way for public trading and substantial growth.

• Founded in 1973 by Michael J. Dupey.
• Sam Wyly acquired controlling interest in 1982.
• Sold to Peoples Restaurants, Inc. (Wyly-controlled) in 1983.
• First publicly traded on NASDAQ in 1984.
• Michael J. Dupey later founded MJ Designs, acquired by Michaels.
• The Revenue Streams & Business Model of Michaels Companies has evolved significantly since these early days.

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The ownership journey of The Michaels Companies, Inc. has seen significant shifts, moving from public trading to private equity control and back again. Key events include its initial public offering in 1984, a leveraged buyout in 2006, a return to public markets in 2014, and its most recent acquisition by Apollo Global Management in 2021.

Following its acquisition by funds managed by Apollo Global Management in April 2021, The Michaels Companies, Inc. is now privately held. This transaction, valued at $5 billion, saw Apollo acquire all outstanding shares for $22.00 per share in cash. As of the 2024-2025 period, Apollo Global Management remains the sole owner, a structure that aims to provide greater flexibility for strategic investments and growth initiatives without the immediate pressures of public market scrutiny.

Key Ownership Milestones

The Michaels Companies has navigated a dynamic ownership landscape, transitioning between public and private ownership multiple times.

• Michaels was first taken private in 2006 by Bain Capital and The Blackstone Group for over $6 billion.
• The company returned to public markets in June 2014, raising approximately $472 million.
• In April 2021, Apollo Global Management completed its acquisition, taking Michaels private again.
• The most recent acquisition by Apollo valued the company at $5 billion, with shares purchased at $22.00 each.
• Understanding the Target Market of Michaels Companies is crucial for appreciating its business strategy under different ownership structures.

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The Michaels Companies, Inc. operates under a board of directors structured to reflect its private ownership by Apollo Global Management. As of February 2025, David Boone joined the board as CEO. Andrew Jhawar, a former Partner at Apollo, serves as Chairman of the Board.

As a privately held entity, voting power is concentrated with its owner, Apollo Global Management. This structure means Apollo dictates major corporate decisions, including board appointments and strategic direction. While the company adheres to corporate governance guidelines and a Code of Business Conduct and Ethics, these frameworks operate within the context of sole private ownership, differing significantly from the governance dynamics of publicly traded companies. The board's primary function is to guide the business on behalf of Apollo, focusing on long-term value creation.

Michaels' Boardroom Dynamics

The board of directors for Michaels Companies is designed to align with the strategic goals of its private equity owner. Key individuals represent Apollo's interests while also bringing executive and independent perspectives.

• Andrew Jhawar, Chairman, brings extensive private equity experience from Apollo.
• David Boone, the current CEO, also holds a seat on the board.
• The board composition reflects the concentrated Michaels Companies ownership.
• Governance practices are tailored for a privately held company, prioritizing shareholder interests.
• Understanding the Growth Strategy of Michaels Companies involves recognizing the board's role in executing that strategy.

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The Michaels Companies' ownership underwent a significant transformation in April 2021, transitioning from a publicly traded entity to a privately held company. This shift occurred through an acquisition valued at approximately $5 billion, with an equity value around $3.3 billion, placing the company under the ownership of Apollo Global Management.

Since becoming a private entity, Michaels has concentrated on internal operational enhancements and strategic growth, free from the immediate pressures of public market reporting. Fiscal year 2023 saw notable improvements, with operating margins and cash generation increasing. Specifically, free operating cash flow reached $136 million, a substantial recovery from a $255 million deficit in fiscal year 2022. These positive financial indicators led S&P Global Ratings to upgrade Michaels' corporate credit rating to B- from CCC+ in April 2024, projecting stable adjusted EBITDA for fiscal 2024.

Operational Improvements

The company has been implementing process improvements, including the rollout of self-checkout kiosks in 40% of its stores, with further expansion planned for 2024. Adjustments to product offerings and pricing are also underway to address consumer price sensitivity.

Executive Leadership Transition

A key leadership change occurred with CEO Ashley Buchanan stepping down effective January 15, 2025. An interim Office of the Chief Executive Officer was appointed, and David Boone joined as CEO in February 2025, signaling continued efforts to drive strategic initiatives.

Focus on Private Operations

As a private company, the focus has shifted from public financial disclosures to internal strategic development. Trends like increased institutional ownership are less relevant now, but the strategy of private equity firms taking retailers private for transformation remains a key aspect of the current landscape, similar to the Marketing Strategy of Michaels Companies.

Financial Health and Outlook

The company's financial performance has shown positive momentum, with S&P Global Ratings upgrading its credit rating. This reflects confidence in the company's ability to generate cash and improve its operating margins under its current ownership structure.

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