On November 25, 2019, Dallas-based The Michaels Companies, Inc. (NASDAQ:MIK) announced its agreement to assume leases for approximately 40 retail store locations and acquire related trademarks, domain names and other intellectual property assets from A.C. Moore Arts & Crafts, Inc. in a complex transaction in which Michaels agreed to pay $58 million, subject to certain purchase price adjustments, for the subject assets. A.C. Moore, an arts and crafts retailer that operates more than 145 stores from Maine to Florida in the eastern U.S., simultaneously announced its plans to liquidate its retail stores. As part of the transaction, Michaels arranged for an unaffiliated REIT to acquire from A.C. Moore a $30 million distribution center/warehouse facility located in Berlin, New Jersey, with Michaels simultaneously entering into a long-term lease for that facility.
This series of transactions will allow Michaels to enhance its position as the largest arts and crafts retailer in North America. Michaels CEO, Mark Cosby, noted “This transaction enables us to further expand our presence in strategic markets and serve even more customers both online and in store. We are looking forward to re-opening these stores under the Michaels name in 2020 and welcoming new team members.”
Baker Botts represented Michaels in these transactions, along with Michaels’ in-house legal team which consisted of Navin Rao, Asifa Sheikh and Jennifer Raibon.
The Michaels Companies, Inc. is North America’s largest specialty provider of arts, crafts, framing, floral, wall décor, and seasonal merchandise. The Company operates more than 1,260 Michaels stores in 49 states and Canada. Additionally, the Company serves customers through a variety of digital platforms including Michaels.com, consumercrafts.com and aaronbrothers.com. The Michaels Companies, Inc., also owns Artistree, a manufacturer of high quality custom and specialty framing merchandise, and Darice, a premier wholesale distributor in the craft, gift and decor industry.
The Baker Botts deal team was as follows (all are based in Dallas unless otherwise noted): Don McDermett, Jon Platt, Michelle Matthews, Ray Palmer, Jacqueline Scioli and Sara Jones (Corporate); Cynthia Cole (Data Privacy-Palo Alto); Steve Marcus and Jordan Hahn (Federal Tax); Matthew Hunsaker (State Tax); Samir Bhavsar, Paul Reilly and Elizabeth Rucki (IP); Connie Taylor (Real Estate-Houston); Paul Cuomo and Michael Bodosky (Antitrust-D.C.); Omar Alaniz (Restructuring)
ABOUT BAKER BOTTS L.L.P.
Baker Botts is an international law firm of approximately 725 lawyers practicing throughout a network of 14 offices around the globe. Based on our experience and knowledge of our clients' industries, we are recognized as a leading firm in the energy and technology sectors. Since 1840, we have provided creative and effective legal solutions for our clients while demonstrating an unrelenting commitment to excellence. For more information, please visit bakerbotts.com.