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.
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.