SHELBURNE, Vt. (AP) – Vermont Teddy Bear Co. on Monday said it has agreed to be taken private by an investment group for $6.50 per share.

The company, famous for its BearGrams and PajamaGrams, said its board has agreed to the offer from a group led by Mustang Group LLC, a Boston-based private equity firm. The board’s decision follows the recommendation of a special committe made up of independent directors.

All shareholders not remaining as investors in the company will receive $6.50 per share. The shares closed down 10 cents to $5.25 on the Nasdaq. They reached a 52-week high of $7.40 in February, but have traded at or below $6 over the past two-plus months.

Certain current investors, including members of the company’s management, and investment firm FreshTracks Capital, will continue to be investors in Vermont Teddy Bear, the company said.

The company said the transaction is expected to close on or before Sept. 30.

“As a private company, Vermont Teddy Bear will no longer face the challenges of a small company trying to comply with increasingly complex and costly public company requirements. We will have more time and resources to devote to growing our business,” said Elisabeth B. Robert, president and chief executive officer of Vermont Teddy Bear. She will continue in those positions following the transaction.

As of Feb. 14, there were slightly more than 5 million common shares outstanding.