The Gymboree Corporation (NASDAQ: GYMB) has hardly been on the market for much time after shares had a great ten days or so on word that it was reviewing alternatives in hope of getting a private equity buyout. It already came. Bain Capital Partners has entered into a definitive agreement for affiliates of Bain Capital to acquire all the outstanding stock of Gymboree for $65.40 per share, or $1.8 billion.
The merger has been unanimously approved by Gymboree’s board of directors. The price represents a 57.4% premium to the ‘unaffected share price’ on September 30, 2010 before market rumors of a transaction. Furthermore, this represents a 23.5% premium to Friday’s closing price.
Under the terms of the agreement, it is anticipated that affiliates of Bain Capital will commence a tender offer for all of the outstanding shares of Gymboree shortly following the execution of the agreement. Gymboree has a 40-day go-shop provision in the deal.
Some deals happen fast, others happen faster than fast. The 52-week trading range is $37.26 to $55.27, or at least it was before the deal reaction this morning. Shares are indicated up about 30% around $69.00 as some hope a higher buyout price will be offered. Keep in mind, this is an all-time high for Gymboree and that goes back to the mid-1990’s.
JON C. OGG
ALERT: Take This Retirement Quiz Now (Sponsored)
Take the quiz below to get matched with a financial advisor today.
Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.
Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future
Take the retirement quiz right here.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Editors' Picks
