FIGS Inc ( FIGS ) shares are trading higher Wednesday following reports suggesting the company received a takeover offer from Story3 Capital Partners.

What To Know: According to a Wall Street Journal report, private-equity firm Story3 Capital Partners sent a takeover offer to medical-apparel maker Figs, valuing the company at more than $1 billion.

The private-equity firm reportedly offered $6 per share for all of the outstanding common shares it doesn’t already own, according to a proposal letter seen by the Wall Street Journal. Story3 and affiliates own just over 1% of Figs’ shares.

The firm reportedly said in its offer letter that strategic limited partner Fortress Investment Group is prepared to provide debt financing for the deal. Story3 would take the company private if the offer were accepted.

Figs' “ability to take the necessary steps to develop confidence around future growth achievement and operating margin improvement is constrained by the company's status as a public company,” the firm said in the offer letter.

Story3 also noted that it’s open to talks with other large shareholders regarding rolling some existing equity into the proposed deal.

"We applaud the board and management for the enormous success in building the industry's category-defining healthcare apparel and lifestyle brand," the private-equity firm said.

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FIGS Price Action: Figs shares were up 17.5% at $6.02 at the time of publication, according to Benzinga Pro.