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
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