The Michaels Companies Inc. has acquired Lamrite West Inc. and some of the wholesale and retail arts-and-crafts supplier’s affiliates and subsidiaries.
Irving-based Michaels expects the impact of the acquisition, excluding purchase accounting adjustments and integration expenses, to be neutral to diluted earnings per share in fiscal 2016 and accretive to diluted earnings per share in fiscal 2017.
The company said it plans to provide more detail in its fourth quarter and fiscal 2015 earnings release.
“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 chairman and CEO Chuck Rubin, commenting in a news release.
Equally optimistic is Lamrite West CEO Michael Catanzarite.
“I have long admired the Michaels team, and with the full weight of Michaels resources, I know that our employees and customers will realize tangible benefits from this combination,” Catanzarite said.
Lamrite West will maintain its team and facilities in Strongsville, Ohio and continue to operate as a distinct business within Michaels. Catanzarite, whose father founded the firm in 1954, will continue to lead the team as CEO of Lamrite West and will serve on Michaels executive committee.
The Michaels Companies Inc. is North America’s largest specialty retailer of arts and crafts. As of Oct. 31, 2015, it owned and operated 1,196 Michaels stores in 49 states and Canada and 118 Aaron Brothers stores.