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Clothing retailer Jos. A. Bank has agreed to buy the parent company of Eddie Bauer in a $827.2 million deal on Friday.
According to the New York Times, Jos. A., which specializes in menswear, also said it will buy back $300 million of its own stock at $65 per share if the deal is confirmed. The deal, which has been in the works since at least 2012, includes Jos. A. paying $564 million in cash and 4.7 million in new shares to Eddie Bauer’s parent company.
Coincidentally, Jos. A.’s own future is complicated, as the company could be taken over by its larger rival, Men’s Wearhouse. USA Today notes that Men’s Wearhouse made a $1.6 billion bid, even though Jos. A. does not want to accept. Men’s Wearhouse has been trying to make more acquisitions as sales of suits decline.
If Jos. A. does accept a takeover bid, it can easily drop out of the Eddie Bauer deal.
Eddie Bauer has around 370 stores nationwide, while Jos. A. has around 600.
“The addition of Eddie Bauer provides us with clear avenues for strong growth and expansion for both of our businesses now and in the years ahead,” Jos. A. CEO Neal Black said in a statement.
image courtesy of Wikimedia Commons