Bain Acquires Gymboree for $1.8B

The sales price translates to $65.40 per share, an acquisition figure that is up 57 percent from Gymboree's closing price on Sept. 30.

October 11, 2010
By Allison Landa, News Editor

Courtesy Flickr Creative Commons user Anthony Cain

It’s not child’s play: Bain Capital L.L.C. is taking The Gymboree Corp. public. The retailer has been purchased by the buyout firm to the tune of $1.8 billion.

The sales price translates to $65.40 per share, an acquisition figure that is up 57 percent from Gymboree’s closing price on Sept. 30. Bain’s agreement with Gymboree stipulates that stockholders will receive $65.40 in cash for each outstanding share of common stock owned.

Bain has nailed down financing from Credit Suisse and Morgan Stanley in order to complete the transaction, which is expects to close by year-end pending approval by the Federal Trade Commission along with other customary closing conditions.

However, a wrench may be thrown into the mix by Dallas-based Goldfarb Branham L.L.P., which is investigating Gymboree’s board of directors for potential breaches of fiduciary duty related to the sale. According to Hamilton Lindley, a securities lawyer with the firm, the investigation is focused on potential unfairness to shareholders as well as the process by which the board considered and approved the transaction.

Gymboree is represented by Wilson Sonsini Goodrich & Rosati, while Ropes & Gray L.L.P. is Bain’s legal advisor.