Teen and young women's wear retailer Charlotte Russe Holding is to be acquired and taken private by private equity firm Advent International Corporation, for a total of $380m.

Under the terms of the merger agreement, an affiliate of Advent will purchase for cash all of the outstanding shares of Charlotte Russe at a price of $17.50 per share.

The transaction represents a premium of 255% over Charlotte Russe's closing share price on 21 January 2009, the day it first announced exploring strategic alternatives.

The Charlotte Russe board has unanimously approved the merger agreement, and recommended that stockholders tender their shares.

Jennifer Salopek, chairman of Charlotte Russe, said: "After careful consideration of a full range of strategic alternatives, including an extensive, publicly announced sale process, we are pleased to have reached this agreement with Advent, which creates substantial value for our stockholders."

David Mussafer, a managing partner at Advent, said: "We are excited to purchase Charlotte Russe and to work with former Old Navy president Jenny Ming, an Advent operating partner, to build on the foundation established by the management team."