Bain Capital to Buy Gymboree for $1.8 Billion

Children's clothing retailer Gymboree (GYMB) has agreed to be acquired by private-equity firm Bain Capital Partners for $1.8 billion in an all-cash deal, the companies said Monday.

Bain's offer values Gymboree stock at $65.40 a share, a 24% premium to Gymboree's closing stock price Friday. Gymboree's board of directors unanimously approved the purchase, the companies said in a statement.

Gymboree shares have pushed higher in recent days on rumors that an acquisition deal was in the works. On Sept. 30, before speculation began, the stock traded at about $41.50 a share.

The 25-year-old clothing retailer operates 630 namesake stores as well as 120 Janie and Jack stores and 80 Crazy 8 stores in the U.S.

"We are pleased to announce this transaction as it delivers significant value to our shareholders," said Matthew McCauley, chairman and CEO of Gymboree, based in San Francisco.

Goldman Sachs Group (GS) acted as Gymboree's special committee of the board, the statement said.