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Blackstone, Bain Capital eye 2.2x return from Michaels Stores IPO

18 Jun 2014

michaelsPrivate equity firms Blackstone and Bain Capital are set to make cash returns of 2.2 times from the IPO of retail business Michaels Stores.

The company is looking to sell 27.7m shares at a price of between $17 and $19, regulatory filings showed.

Blackstone and Bain bought the company for $6bn including around $1.7bn equity with the investment split in half between the two firms, according to PeHUB.

The firms currently own a 93.3 per cent stake with Highfields Capital Management holding 6.2 per cent.

Bain invested in the company from its $10bn 2006-vintage ninth fund, which was generating a 7.7 IRR, data from the Regents of the University of California showed.

Blackstone backed Michaels via its $21.7bn Fund V, which was generating a 5.67 per cent net IRR at the end of December.

The firms attempted to float the company in a $500m IPO in 2012 but cancelled the plans after CEO John Menzer resigned after suffering a stroke.

Michaels operates 1,200 stores in the US and Canada and owns more than 120 Aaron Brothers stores. It posted sales of about $4.6bn last year.

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