The US$1.8bn deal should be completed by the end of the year

The US$1.8bn deal should be completed by the end of the year

Private equity firm Bain Capital has agreed to buy US children's wear retailer Gymboree in a deal worth US$1.8bn.

A statement by the company said that Bain Capital will acquire all the outstanding stock of Gymboree for $65.40 per share.

It represents a 57.4% premium to the company's share price on 30 September, before recent market rumours of a transaction, and a 23.5% premium to Gymboree's closing stock price on 8 October, the last full trading day before today's announcement. 

"We are pleased to announce this transaction as it delivers significant value to our shareholders," said Matthew McCauley, chairman and chief executive officer of Gymboree. "We want to thank our employees for their hard work and dedication to Gymboree.

"Bain Capital is a world-class asset management firm with substantial resources and investment experience in the retail industry, and we believe they will be a great partner as we go forward as a private company." 

If the tender offer is successfully completed, Gymboree expects the transaction to close by year end.