The Michaels Companies, Inc. announced Tuesday that it acquired Lamrite West, Inc, the international wholesale and retail supplier of arts and crafts behind Pat Catan's stores.
Michaels said the deal was for $150 million. The company anticipates the impact of the acquisition will be neutral to diluted earnings per share in fiscal 2016 and accretive to diluted earnings per share in fiscal 2017.
"The acquisition of Lamrite West represents a unique opportunity to add a business to the Michaels portfolio that will strategically enhance our private brand development capabilities, accelerate our direct sourcing initiatives, and strengthen our business-to-business capabilities," said Chuck Rubin, Michaels' chairman and chief executive officer. "As CEO of Lamrite West, Mike Catanzarite has built a strong leadership team and cultivated a pervasive culture of customer service. Together, we will serve our combined customer base better to help us achieve our long-term growth goals."
Catanzarite said in a statement he has long admired the Micahels team and knows Lamrite West, Inc. employees and customers will notice tangible benefits from the combination of the two companies.
Michaels told newsnet5.com no stores will close and there will be no layoffs due to the ownership change.
Michaels said in a release that Lamrite West will keep its team and facilities in Strongsville, as well as continue to operate as a distinct business within Michaels. Michael Catanzarite will continue to lead the team as CEO of Lamrite West and will serve on Michaels executive committee.
Michaels plans to report its fourth quarter and fiscal 2015 results before the market opens on March 17.
Lamrite West, Inc. had a total of 31 Pat Catan's stores located in Ohio, Pennsylvania, Michigan and West Virginia. Twenty-four of those stores were in Ohio.
Michaels has stores in 49 states and Canada. It also owns 118 Aaron Brothers stores and produces 12 exclusive private brands.