BOSTON-Locally-based Bain Capital Partners LLC is purchasing the Gymboree Corp. for $65.40 per share, which translates into $1.8 billion. The purchase price will signify at 57.4% premium to the primarily child product retailer's share price. The deal is expected to close by the end of 2010.

"Gymboree is a terrific company with incredible brand strength and large population of extremely satisfied customers," says Jordan Hitch, a managing director at Bain Capital. The retailer will remain in its current locations throughout the US, Canada and Australia.

Operating 1,037 retail stores, San Francisco-headquartered Gymboree is waiting on approval from share-holders and The Federal Trade Commission, under customary rules such as the anti-trust improvements act. Bain has assembled financing from Credit Suisse and Morgan Stanley and has an option to delay the closing date if financing is not fully in place by then. Gymboree is allowed to solicit acquisition proposals from third parties for 40 calendar days ending November 20, 2010.