Seeking Alpha

Jos. A. Bank to buy Eddie Bauer in $825M deal

  • Jos. A. Bank Clothiers (JOSB) has agreed to acquire Everest Holdings, the parent company of the Eddie Bauer brand, in a cash-and-stock deal with an enterprise value of $825M.
  • The transaction includes a potential earn-out of $50M based on Eddie Bauer's 2014 EBITDA Performance
  • The acquisition will complicate the attempt of Men's Warehouse (MW) to buy Jos. A. Bank, although the latter left the door open for such a deal by saying that it can terminate the Eddie Bauer transaction if it receives a buyout offer that can "reasonably be expected to create greater value for Jos. A. Bank's shareholders."
  • Jos. A. Bank also plans to acquire up to 4.6M shares for $65 each for a total amount of $300M.
  • Jos. A. Bank is buying Eddie Bauer from P-E firm Golden Gate Capital, which is set to become a major shareholder in Jos. A. Bank.
  • The retailer's shares are +7.6%, while Men's Wearhouse is -9.7%. (PR)
Comments (3)
  • mpmassey
    , contributor
    Comments (472) | Send Message
    Shares of JOSB down more than 3% in pre-market trading.
    14 Feb 2014, 07:59 AM Reply Like
  • theo_rhetoric
    , contributor
    Comments (215) | Send Message
    Great. Now if I buy one pair of jeans, I can get two more - for free!
    14 Feb 2014, 08:25 AM Reply Like
  • Martybest
    , contributor
    Comments (3) | Send Message
    EB not much better than JAB and I work there....only for 1 more week.......horribly run company, our district in KS is in utter chaos......can't get out of there fast enough
    14 Feb 2014, 09:21 AM Reply Like
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