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 (904) | 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 (261) | 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 (11) | 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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