US: Jos A Bank acquires outdoor wear brand Eddie Bauer
Under the deal, Jos A Bank will pay US$564m in cash and issue around 4.7m new shares to Everest Topco, the parent company of Eddie Bauer and a portfolio company of Golden Gate.
On closure of the deal, Everest Topco will own 16.6% of the company's outstanding shares and will have the right to designate two board directors.
The acquisition comes as Jos A Bank and Men's Wearhouse continue their battle to buy each other.
Earlier this month, Jos A Bank Clothiers turned down yet another acquisition bid by Men's Wearhouse.
In a letter today, Jos A Bank reiterated the offer "substantially undervalues" the company and it therefore sees "no benefit in commencing negotiations".
Its previous bid for Men's Wearhouse, however, has been backed by Eddie Bauer's owner, Golden Gate Capital.
Jos A Bank announced its intent to purchase larger rival Men's Wearhouse in October. After that effort was rebuffed, Men's Wearhouse mounted its own effort to buy Jos. A. Bank, which was in turn rejected.
Separately, the company updated its fourth-quarter earnings guidance. It now expects adjusted EPS of $1.04 to $1.10 per, compared to $0.98 in the fourth quarter of fiscal 2012.
Formal clothing specialist Men's Wearhouse has been ordered to pay $42.6m in damages to a former licensee of its JA Apparel business....
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