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03/04/2021

Joann sets terms for IPO

Marianne Wilson
Editor-in-Chief
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Joann is leveraging the surge in arts-and-crafts amid the pandemic to go public.

The fabrics and crafts retailer set the terms for its initial public offering with plans to raise $175 million by offering 10.9 million shares at a price range of $15 to $17.  

At the midpoint of the proposed range, Joann would command a fully diluted market value of $679 million. The company, which intends to list its shares on Nasdaq under the symbol “JOAN,” released the terms the day after rival The Michaels Cos. entered into a deal to be acquired by private equity firm Apollo Global Management Inc. for $3.3 billion. 

Joann operates 855 stores nationwide. It was taken private in 2011 by private-equity firm Leonard Green & Partners LP in a $1.6 billion deal, reported $2.6 billion in sales for the 12 months ended October 31, 2020.  

“Joann is the nation's category leader in sewing and one of the fastest-growing players in the arts and crafts category," the company said in its filing documents.

Proceeds of the IPO will be used to pay down borrowings under a second lien facility and if possible, to pay down borrowing on an ABL facility.