Executives say they expect the deal to close by the end of thecalendar year. Michael's stock was trading in the high $30-rangebefore the deal was announced. The deal takes the retailerprivate.

The buyers say that they think Michael's is well-positioned forfuture growth. "We are delighted to partner with the Michael'smanagement team to help build on its already strong position in anattractive industry, and capitalize on the significant growthopportunities that lie ahead," says Matt Levin, a managing directorat Bain Capital, in a statement. "We look forward to helpingMichael's achieve its full long-term potential."

Bain Capital, based in Boston, has invested in a number of majorretailers over the years, bringing them private, includingBurlington Coat Factory and Toys "R" Us. New York City-basedBlackstone earlier this year acquired office-owner TrizecProperties in a joint venture transaction valued close to $5billion.