Jos. A. Bank in talks to acquire peer Eddie Bauer from private equity owner

By VCPOST Staff Reporter

Feb 03, 2014 03:49 PM EST

Maryland-based apparel retailer Jos. A. Bank Clothiers Inc. is reportedly negotiating to acquire peer Eddie Bauer from San Francisco private equity firm Golden Gate Capital, newswire RTTNews said in a report. Wall Street Journal on Saturday said that terms of the deal were not disclosed. 

A possible deal comes in the wake of a takeover war between Jos. A. Bank and Texas-based rival Men's Warehouse Inc. Jos. A. Bank's rejected buyout offer for Men's Wearhouse in October was backed by Golden Gate Capital, the report said. 

According to RTTNews, Eddie Bauer was bought out of bankruptcy by Golden Gate Capital in 2009 via $286 million in cash and the assumption of hundreds of millions of dollars in debt. The Washington-based clothing store chain sells casual clothing, sportswear and outerwear for men and women. Eddie Bauer operates its business from over 370 stores in the US and Canada.

The report, quoting a WSJ source, said that Jos. A. Bank has also inked non-disclosure agreements related to potential buyouts of other companies aside from Men's Wearhouse. However, it could not be learned whether the apparel retailer is aggressively pursuing any other deal besides Eddie Bauer.

Meanwhile, New York hedge fund Eminence Capital LLC in January asked a Delaware court to block any acquisition by Jos. A. Bank that it fears would thwart Men's Wearhouse's bid to buy its Maryland rival by making it too expensive. Eminence Capital holds major stakes in both Jos. A. Bank and Men's Wearhouse and has been seeking to merge the two companies, RTTNews said. 

Men's Wearhouse on Thursday prodded Jos. A. Bank's board to take a second look at its $57.50 per share buyout offer. The Texas-based clothing retailer also said that it is willing to sweeten its bid for Jos. A. Bank should it find additional value during the due diligence process, the report said. 

© 2024 VCPOST, All rights reserved. Do not reproduce without permission.

Join the Conversation

Real Time Analytics