Bain Capital will add children's clothing giant The Gymboree Corporation to its portfolio, acquiring all outstanding stock for for $1.8 billion.
The $65.40 per share price tag represents a 57.4 percent premium over the company’s share price on 30 September. The deal is expected to close by year’s end.
Bain has committed financing from Credit Suisse and Morgan Stanley in an amount “to complete the transaction”, and the firm may delay the closing to complete the financing, the firm said in a statement.
Gymboree has until 20 November to solicit rival offers.
Bain made the investment from its 10th fund, which raised $10 billion in 2006.