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)