The Michaels Companies Inc. to Apollo Global Management

Deal Information

Target

The Michaels Companies Inc.

Acquiror

Apollo Global Management

Sector

General Retail

Target Type

Public

Acquiror Type

Financial

Advisors

UBS

Enterprise Value

$5.0B

EV / LTM Sales

EV / LTM EBITDA

6.9x

EV / Fwd EBITDA

Comparable transactions cited by the advisor, excluding the subject transaction.

TV/LTM EBITDA selected range: 5.0x - 7.0x

6 comps


Dec 2020	Sportsman's Warehouse Holdings Inc.	Great American Outdoors Group, LLC	$788M	-	6.0x	-
Aug 2020	Hudson Ltd.	Dufry AG	$1.1B	-	5.7x	-
Jun 2020	GNC Holdings, Inc.	Harbin Pharmaceutical Group Co Ltd	$780M	-	6.9x	-
Aug 2019	Vitamin Shoppe Inc.	Franchise Group Inc	$206M	-	3.7x	-
Jun 2019	Barnes & Noble Education, Inc.	Elliott Management Advisors L.P.	$603M	-	5.7x	-
Jun 2017	Staples Inc.	Sycamore Partners	$6.7B	-	5.0x	-
	Mean			-	5.5x	-
	Median			-	5.7x	-

Discount rate and terminal value assumptions the advisor selected for its discounted cash flow analysis.

WACC: 9.0% – 11.0%
Terminal method: Exit multiple
Terminal assumption: 6.0x – 7.5x (FY2025E standalone Adjusted EBITDA (as adjusted to reflect normalized capital expenditures))
Forecast basis: Company Forecasts (as provided to UBS by management as of January 18, 2021)
Forecast period: 2021E through 2025E (from April 30, 2021)

Advisor	WACC	Terminal method	Terminal assumption	Forecast basis	Forecast period	Filing
UBS	9.0% – 11.0%	Exit multiple	6.0x – 7.5x (FY2025E standalone Adjusted EBITDA (as adjusted to reflect normalized capital expenditures))	Company Forecasts (as provided to UBS by management as of January 18, 2021)	2021E through 2025E (from April 30, 2021)	Open