Michaels will be acquired by a private equity firm in a $5 billion deal.

Apollo Küresel Management announced Wednesday that it would acquire the crafts retailer Michaels in a deal that valued the company at $5 billion.

The acquisition is a bet that Michaels can continue to ride the wave of enthusiasm for crafting spurred by Americans stuck at home during the pandemic. The company has also invested in its digital business, starting both curbside and same-day delivery.

Shares of the retailer, which has more than 1,200 stores in North America and some 44,000 employees, have risen nearly 300 percent over the past year, giving it a market capitalization of around $2.3 billion.

The deal will bring Michaels back into the hands of private equity after seven years as a public company. The private equity firms Bain Capital and Blackstone acquired Michaels in 2006, taking it private in a deal worth more than $6 billion. The company made its way back into the public markets in 2014, at a market value of about $3.5 billion. Bain is still a large shareholder.

At least one other private equity firm had expressed interest in acquiring Michaels, according to two people familiar with the situation.

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