Jos. A. Bank Grabs Eddie Bauer for $825M

Combined company expects $2.1B in sales this year

By Arden Dier,  Newser Staff

Posted Feb 14, 2014 7:14 AM CST | Updated Feb 14, 2014 7:19 AM CST

(Newser) – Men's Wearhouse really wants to buy rival Jos. A. Bank, but the deal announced today is all about the latter, not the former. Jos. A. Bank is buying Eddie Bauer's parent company in a cash and stock deal worth $825 million, Bloomberg reports. The combination will allow "two iconic American brands to share core competencies and demographically similar customer bases," Jos. A. Bank said, though the two will run independently of each other. Combined, expected revenues for 2014 are $2.1 billion; Jos. A. Bank's sales totaled $1.05 billion in the year ended Feb. 2, 2013.

But the door hasn't been slammed shut for Men's Wearhouse, reports the AP. Even as it announced the deal, Jos. A. Bank said it may end it if it receives an acquisition offer for its company that it feels is superior. It would have to pay a termination fee if it accepted such an offer. The Hampstead, Md.-based retailer said that the Eddie Bauer transaction includes $564 million in cash and about 4.7 million new shares of Jos. A. Bank stock issued to Everest Topco at $56 per share.

In this June 17, 2009 file photo, shoppers walk past an Eddie Bauer store in Seattle.   (AP Photo/Elaine Thompson, file)
In this March 17, 2003 file photo, pedestrians walk by an Eddie Bauer store on Michigan Ave. in Chicago.   (AP Photo/Charles Bennett, File)
This undated file photo provided by JoS. A. Bank, shows a JoS. A. Bank store at the Shops at Midtown Miami in Miami, Fla.   (AP Photo/JoS. A. Bank, File)
« Prev« Prev | Next »Next » Slideshow
To report an error on this story, notify our editors.

Other Sites We Like:   The Street   |   MSN Living   |   PopSugar Tech   |   RealClear   |   24/7 Wall St.   |   Biography   |   Barstool Sports   |   OK!