Children's apparel retailer Gymboree agrees to $1.8 billion buyout by Bain Capital
11 Oct 2010
Gymboree Corporation, the US-based children's apparel retailer, today said it has agreed to a $1.8 billion take-over offer by Boston-based asset management firm Bain Capital.
The news of the transaction sent the retailer's stock surging $12, or 22.7 per cent, to $64.95 in early trading at the New York Stock Exchange today.
With brands, including Gymboree Play & Music, Gymboree retail stores, Gymboree Outlet stores, Janie and Jack shops and Crazy 8 stores, San Francisco-based Gymboree operates more than 650 stores in the US, Mexico, Puerto Rico, Canada and Australia, as well as an online store.
Under the deal, Bain Capital has offered to pay $65.40 per share, a premium of 24 per cent to Gymboree's 8 October closing stock price of $52.95.
Bain Capital will start a tender offer shortly after executing an agreement, but Gymboree has the option of seeking third-party offers for 40 days till 20 November.
"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.
