Pat Catan’s craft stores bought by Michaels for $ 150 million
Pat Catan’s, based in Strongsville, was purchased by the Michaels national chain on Tuesday, February 2, 2016.
Pat Catan’s, the locally-founded, family-owned arts and crafts retailer based in Strongsville, was acquired by The Michaels Companies for $ 150 million. Michaels retains the stores, their names, their Strongsville headquarters and CEO Michael Catanzarite, son of founder Pat Catanzarite. Pat Catan’s has 34 stores in four states.
CLEVELAND, Ohio – Pat Catan’s Craft Centers, the family-owned, locally-founded arts and crafts retailer, was acquired by Michaels Companies Inc., the largest arts and crafts retailer in North America, for $ 150 million of dollars.
Michaels said Lamrite West, the name of the Pat Catanzarite company founded in 1954 to provide craft supplies, display cases and decorations to Cleveland department stores like Higbee’s, Halle’s, Linders and Rosenbloom, would retain its team and headquarters. of Strongsville. Lamrite is now an international wholesaler and retail supplier of arts and crafts.
And unlike what often happens after mergers, Pat Catan’s 34 arts and crafts stores in Ohio, Pennsylvania, Michigan, and West Virginia will continue to operate independently under Michaels, all like its wholesale business, called Darice Inc. Lamrite West’s 1,600 employees will keep all of their jobs, a spokesperson said.
Pat Catan’s has 16 stores in Northeast Ohio including Akron, Amherst, Austintown, Bedford, Boardman, Cleveland, Cuyahoga Falls, North Canton, North Ridgeville, Painesville, Parma, Strongsville, Warren, Westlake, Willowick and Wooster.
Lamrite West CEO Michael Catanzarite, Pat’s son, will remain CEO and join Michaels’ executive committee.
The acquisition of Pat Catan comes nearly five years after Hudson-based Jo-Ann Stores, the fabric and craft retailer founded by two Cleveland families in 1943, was acquired by Leonard Green & Partners LP, a Los Angeles-based private equity firm in a cash transaction valued at $ 61 per share, or about $ 1.6 billion.
Jo-Ann Fabric and Craft Stores, a major rival to Michaels, now operates more than 850 stores in 49 states, as well as e-commerce site Joann.com and three distribution centers in Hudson, Visalia, Calif., And Opelika, Alabama. . Jo-Ann employs over 23,000 people nationwide.
As of October 31, 2015, Michaels owned and operated 1,196 Michaels stores in 49 states and Canada, as well as 118 Aaron Brothers stores, and produced 12 exclusive private labels.
“We are very happy to announce that we are joining The Michaels Companies!” Pat Catan’s announced it on their website. âWe look forward to this next chapter in the history of our company and our family.
“Our 34 stores will continue to be called Pat Catan’s and will remain open. You will not be able to redeem your Michaels coupon at Pat Catan’s or vice versa (sorry for this one!),” The statement said.
âAnd so, as we join a bigger company, one thing will never change: For over 60 years, Pat Catan’s stores have been your choice for creativity and customer service. You can always count on it! “
Michaels said the acquisition would not impact fiscal 2016 earnings per share, but would contribute to fiscal 2017 earnings. Michaels reported sales of $ 4.7 billion during the 2014 financial year.
Michaels said he would provide more details when releasing his fourth quarter and fiscal 2015 results on March 17.
“The acquisition of Lamrite West represents a unique opportunity to add a company to the Michaels portfolio that will strategically enhance our private label development capabilities, accelerate our direct sourcing initiatives and strengthen our business-to-business capabilities,” said Chuck, President and CEO. Rubin said in a written announcement.
âAs CEO of Lamrite West, Mike Catanzarite has built a strong leadership team and cultivated a pervasive culture of customer service. Together, we will better serve our combined customer base to help us achieve our long-term growth goals, âhe said.
Catanzarite said in the same release that “I have long admired the Michaels team, and with the full weight of Michaels’ resources, I know that our employees and customers will reap tangible benefits from this combination.”
Michaels shares closed at $ 21.54 on Wednesday, down 2% from Tuesday’s final price of $ 22.08.