The Michaels Companies, Inc. is always looking to provide a quick and convenient shopping experience to customers. To this end, it has partnered with Instacart to offer same-day delivery services. The company has started a pilot program, wherein Instacart will deliver from roughly 100 Michaels stores located in Chicago, Dallas and Washington DC. Customers can now avail art and craft products including canvases, yarn, paint and other art supplies, with the added benefit of doorstep delivery within an hour. Post this testing phase, the facility will be rolled out to all Michaels stores in the coming months. With this deal, Michaels will be the first art and crafts retailer in the Instacart marketplace. Customers can use the Instacart mobile app or visit www.instacart.com/michaels to purchase these products. Also, there is chat support and shoppers will be able to track their orders. Other notable retailers partnering with Instacart to improve delivery facilities include Rite Aid Corporation ( RAD Quick Quote RAD - Free Report) and Bed Bath & Beyond ( BBBY Quick Quote BBBY - Free Report) . Coming back to Michaels, this new collaboration is in sync with the Maker strategy that aims at strengthening the company’s retail foundation, thereby boosting omni-channel experience and repositioning the business. Its Maker stores offer personalized assortment, better layout and improved services. Moreover, management revamped the Michaels rewards loyalty program and reinvented its store formats with a new in-store layout, inspiration hubs and an innovative checkout design under the core Maker strategy. Further, it remains focused on integrating e-commerce and in-store operations to enhance the omnichannel experience. Some of the new delivery options include curbside pick-up; same-day delivery; ship from store; buy online, pick-up in store and in-app purchases. Also, the company’s new online express checkout option offers customers an even more convenient shopping experience in just four clicks. Management also foresees e-commerce sales growth to continue in the near term. In the past three months, shares of this Zacks Rank #3 (Hold) company have surged 68.6%, outperforming the industry’s 7.7% growth. You can see . the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here What’s More?
Michaels recently signed a definitive agreement to be acquired by
Apollo Global Management, Inc. ( APO Quick Quote APO - Free Report) for $5 billion. The deal, which is subject to customary closing conditions, is expected to be concluded by the first half of fiscal 2021. After the deal completion, the arts and crafts retailer will become a private company. The transaction will help Michaels invest, expand and enhance retail and digital channels. Per the agreement, Apollo will acquire all outstanding shares of Michaels for $22.00 per share in cash through a tender offer. As agreed, the affiliate of Apollo — Magic MergeCo, Inc. — has commenced the cash tender offer, which is set to expire on Apr 12, 2021. This price marks a 47% premium from the company’s closing stock price of $15 per share on Feb 26, 2021, and 78% premium to the 90-day volume-weighted average price. The remaining shares, which are not covered in the tender offer, will also be acquired by Apollo in a second-step merger at the same price. In the second phase of the merger, the transaction of these shares will be funded by equity provided by Apollo managed funds and committed debt financing. Prior to this, Michaels went private when it was acquired by private equity firms, Bain Capital and Blackstone, in 2006. It again became public in 2014. More Stock News: This Is Bigger than the iPhone!
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