Gymboree Corp. Accepts Bain Capital Buyout Offer

The Gymboree Corporation has agreed to a takeover by private investment firm Bain Capital Partners LLC in a transaction valued at $1.8 billion, or $65.40 per share, in one of 2010’s largest buyouts.

“We are pleased to announce this transaction as it delivers significant value to our shareholders,” said Matthew McCauley, chairman and CEO of 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.”

Gymboree expects the transaction—which includes ownership of more than 1,000 store locations in North America and Australia—to close by the end of the year. The children’s apparel company, which also operates Janie and Jack shops and Crazy 8 stores, has seen its growth slow the past three years, but annual profits have been up for the past five years.

Bain has made three other retail and apparel acquisitions since 2006, purchasing Edgars Consolidated Stores for $3.7 billion in 2007, Burlington Coat Factory for $1.9 billion in 2006 and Lilliput Kidswear for $66 million this year.