Yankee Candle, a luxury candle maker, has agreed to be acquired by a Chicago private equity firm for $1.4bn (€1.1bn) in cash.

Under terms of the deal, Madison Dearborn Partners is buying out the candle company. Yankee shareholders will receive $34.75 in cash for each share of Yankee common stock they hold. The deal is expected to close in the first quarter of 2007.