West Los Angeles private equity firm Leonard Green & Partners LP and another California firm are taking New York apparel retailer J. Crew Group Inc. private in a deal valued at nearly $3 billion.

J. Crew, which gained a higher profile as one of First Lady Michelle Obama’s favorite clothing lines, said Tuesday it has agreed be acquired by the two funds including TPG Capital, a San Francisco leveraged buyout firm.

The firms will pay J. Crew shareholders $2.86 billion, or $43.50 a share, a 16 percent premium to the stock’s closing price on Monday. Bank of America Merrill Lynch and Goldman Sachs are providing financing.

Millard Drexler will continue as J. Crew’s chairman and chief executive and maintain a significant equity investment. A special committee of the board will review any alternative bids through Jan. 15, the company said.

“J.Crew's strong brand equity and proven multichannel strategy position the company extremely well to expand its business, both in the U.S. and internationally," Jonathan Sokoloff, Leonard Green’s managing partner, said in a statement.

Leonard Green’s other retail investments have included Sports Authority, Container Store and Whole Foods.

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