Why Michaels Companies Stock Soared Today

Shares of arts and crafts retailer The Michaels Companies (NASDAQ: MIK) jumped Wednesday after it announced a deal to be acquired by private equity fund manager Apollo Global Management (NYSE: APO).

Shares were up 23% as of 10:30 a.m. EST, trading slightly above the transaction price.

The acquisition from funds managed by Apollo gives Michaels an equity value of $3.3 billion at a $22 share price. Including debt, the transaction is valued at $5 billion. Micheals' shares moved up in late February when speculation about a deal began, but the purchase price represents a 78% premium to the 90-day average price.

Source Fool.com