J. Crew Group Inc. has inked a $3 billion deal to be acquired by TPG Capital and Leonard Green & Partners.


The private equity firms will pay $43.50 cash for each share of retailer—a 15.5 percent premium over Monday’s closing price.


Millard “Mickey” Drexler, chairman and chief executive officer, will remain with the firm and maintain a significant equity stake in the company.


“We are in this for the long term and we do what we do day in and day out so we can deliver the best possible products to our customers,” Drexler said.


Private equity firms have been circling retailers in recent months as a combination of relatively low stock prices and readily available financing have made the sector more attractive.


This would be TPG’s second round as a J. Crew owner. It acquired 88 percent of the company in 1997, sold most of its stake when J. Crew went public in 2006 and only sold off the final pieces of its investment last year.


Word that a deal might be coming sent shares of the company up 17.5 percent to $44.25 in pre-market trading Tuesday. The New York Stock Exchage halted trading pending news from the company.


For complete coverage, see Wednesday’s issue of WWD.