San Francisco Gymboree Corp. has agreed to be purchased by affiliates of private equity firm Bain Capital LLC for $1.8 billion.
Gymboree said Monday that the deal is for $65.40 per share, a 24% premium to Gymboree's Friday closing stock price of $52.95. The retailer, based in San Francisco, currently has about 27.3 million shares outstanding.
The news did not come as a surprise, as speculation about a potential acquisition had been brewing for a few weeks.
Bain Capital's affiliates are likely to start a tender offer shortly after an agreement is executed. The firm has committed financing from Credit Suisse and Morgan Stanley in an amount necessary to complete the acquisition. Bain Capital may push back the closing under certain circumstances in order to complete the financing, the companies said.
"Gymboree is a terrific company with incredible brand strength and a large population of extremely satisfied customers," Jordan Hitch, Bain Capital managing director, said in a statement.