Shares of The Michaels Companies Inc. MIK closed on a high note after a news report surfaced that the arts and crafts retailer is the object of potential acquisition by at least two private equity firms.

What Happened: Apollo Global Management APO and “at least one other private equity firm” have expressed interest in acquiring Michaels, according to a New York Times reported citing two anonymous "people familiar with the situation." If an acquisition is transacted, Michaels would return to being privately owned after seven years as a publicly-traded company.

The NYT's report stated “the values of the bids weren’t clear” and added it was possible Michaels would reject the offers. The company is scheduled to report its latest earnings on Thursday.

Why It Happened: Michaels has more than 1,200 stores and a 44,000-person workforce. The COVID-19 pandemic turned out to be a financially successful period for the company, with many people turning to arts and crafts as a means of passing time during the stay-at-home edicts.

Michaels’ shares have surged by nearly 300% over the past year, resulting in a market capitalization of approximately $2.3 billion. In its third-quarter earnings announced in December, the company recorded $1.4 billion in net sales, a 15.1% year-over-year increase.

MIK Price Action: News of the potential acquisition boosted Michaels’ shares, which closed at $16.85, up 12.33%.

Photo by Anthony92931 via Wikimedia.