Jos. A Bank to Buy Eddie Bauer for $825M
NEW YORK (TheStreet) -- Folowing months of rumors that a deal was imminent, Jos. A Bank
The Hampstead, Md.-based firm made the deal with Everest Topco to buy Everest Holdings, Eddie Bauer's parent company.
"Jos. A. Bank has been engaged in an intensive process over the last two years to identify and review high potential acquisition candidates that would enable the Company to leverage its core competencies and deliver immediate and long-term value to its shareholders," Jos. A Bank said, in a statement. "Eddie Bauer was one of the first acquisition candidates considered by Jos. A. Bank."
"[The] combination creates substantial opportunities for growth and synergies while allowing two iconic American brands to share core competencies and demographically similar customer sase," said Jos. A. Bank.
The purchase price combines $564 million in cash and approximately 4.7 million new shares of Jos. A Bank's common stock. In 2014, the combined company is expected to generate in excess of $2.1 billion in revenue, $255 million to 265 million of adjusted EBITDA and $3.20 to $3.40 of adjusted EPS, according to Jos. A Bank.
Shares of Jos. A Bank dipped 3.5% to $53 before market open.
-- Written by James Rogers in New York