Gymboree’s stock jumps on report the retailer could be sold for more than $1 billion
By APTuesday, October 5, 2010
Gymboree shares rise on report of potential sale
NEW YORK — Shares of Gymboree Corp. surged in afternoon trading on Tuesday after a report indicated the children’s clothing company could go for more than $1 billion in an auction.
Gymboree’s stock rose $2.96, or 6.1 percent, to $51.20. The shares have traded between $37.26 and $55.27 over the last year.
News of the potential auction came from The New York Post, which said Apollo Management is expected to be among the bidders.
Other potential suitors include Bain Capital, KKR, Apax Partners and Irving Place Capital, the newspaper said, citing unnamed sources.
Gymboree declined to comment on the report, saying it does not comment on market speculation.
The Wall Street Journal reported on Thursday that the company, which is based in San Francisco, was considering selling itself to a private equity firm.
Gymboree retained Goldman Sachs last month after two firms, including Apollo, inquired about a potential purchase, the Post said. Gymboree reportedly is looking for $55 to $60 per share.
With more than 27.3 million shares outstanding, $55 per share amounts to more than $1.5 billion.
The company had 1,019 stores as of July 31, including Gymboree, Janie and Jack and Crazy 8.
