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Jos. A. Bank to buy Eddie Bauer for $825m

Rick Wilking/Reuters

NEW YORK — Jos. A. Bank Clothiers said Friday it had agreed to buy the parent company of Eddie Bauer in a deal valued at $825 million, including cash and debt.

It will also buy back up to $300 million of its own stock if the deal goes through, paying $65 a share in what it said was a way to return capital to shareholders.

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Friday’s transaction appears to also be an effort by Jos. A. Bank to blunt a $1.6 billion hostile takeover bid by Men’s Wearhouse. Yet the company left itself an opening to pursue alternative transactions — potentially including a higher takeover bid.

In its deal for Eddie Bauer, Jos. A. Bank would pay $564 million in cash and about 4.7 million new shares of it stock. Bauer, an outdoor clothing company, is now owned by the private equity firm Golden Gate Capital.

New York Times

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