NEW YORK — Arts and crafts retailer Michaels is going private.

The retail chain, based in Irving, Texas, said Wednesday that it has agreed to be acquired by Apollo Global Management Inc. for a transaction valued at $5 billion.

Under the terms of the agreement, approved by Michaels’ board, Apollo will begin a tender offer to buy shares for $22 each in cash. The purchase price represents a 47% premium to the closing stock price on Feb. 26, the last trading day prior to the media speculation about the potential deal.

In midday trading, shares rose 23%, or $4.17, to $22.19.

“The company’s impressive growth transformation, including our financial and operational performance in the unprecedented environment of the pandemic, led to an unsolicited offer to buy the company,” said James Quella, chairman of the Michaels board of directors.

Company executives said that by going private, Michaels will have the financial flexibility to invest and improve its retail and online business.

Andrew S. Jhawar, senior partner and head of retail and consumer group at Apollo, said there’s significant opportunity to improve the Michaels brand, store experience and online business across North America.

The deal includes a 25-day go-shop period which lets Michaels to solicit and evaluate other offers and to terminate the deal for a better proposal. UBS is acting as the company’s exclusive financial adviser.

The company operates more than 1,275 Michaels stores in 49 states and Canada.