US: Private equity firms to buy Eddie Bauer for $286m
Specialty retailer Eddie Bauer Holdings is to be taken private in a deal agreed today (13 November) with two private equity firms.
The acquisition by Eddie B Holding Corp, a company owned by affiliates of Sun Capital Partners, Inc and Golden Gate Capital, includes a price of about US$286m and the assumption of about $328m of debts.
The deal represents a 12% premium over the average closing share price of Eddie Bauer in the last four weeks, and is expected to be completed in the first quarter of 2007.
Eddie Bauer CEO Fabian Mansson said: "We believe that the transaction will provide Eddie Bauer with new resources and the time necessary to execute our turnaround strategy.
"We look forward to partnering with Sun Capital and Golden Gate, who bring extensive experience in the retail and catalogue sectors, to take our company to the next level and to capitalise on the potential of the Eddie Bauer brand."
Sun Capital managing director Gary Talarico added: "We are pleased to join with Golden Gate Capital in signing this definitive agreement to acquire one of the best known brands in the apparel industry.
"We are particularly excited about the combination of the considerable experience of our respective firms in retailing, apparel and direct marketing and look forward to working with the management of Eddie Bauer to continue the success and growth of the brand."
Sun Capital's current affiliated portfolio companies include Mervyn's, Shopko Stores, Lillian Vernon, Marsh Supermarkets, Anchor Blue Retail Group, Dim Branded Apparel, and Most.
Among Golden Gate Capital's current investments is Catalog Holdings, a $1.1bn-revenue direct marketer of women's apparel whose brands include Spiegel, Newport News, Appleseed's, Norm Thompson, Drapers and Damons, Venus, and Haband, among other titles.
1920-established Eddie Bauer sells casual sportswear and accessories for the modern outdoor lifestyle. The firm used to be owned by Spiegel, which filed for bankruptcy protection back in March 2003.
Help test our new apparel sourcing tool.
The shareholders of military boot manufacturer Wellco Enterprises have approved its proposed merger between Wellco and a corporation organised by Golden Gate Capital and Integrity Brands....
Golden Gate Capital's Appleseed's Topco affiliate has completed its acquisition of Blair Corp, the online and catalogue retailer of apparel and home products, for US$173.6m....
Shareholders of direct marketer Blair Corp at a special meeting Tuesday (24 April) approved the acquisition of the company by an affiliate of Golden Gate Capital for US$173.6m....
Direct apparel market Blair Corp suffered a larger loss on a steep sales decline during the first quarter....
The independent auditors of Eddie Bauer Holdings on Tuesday (17 April) removed a cautionary note about the retailer's ability to remain a "going concern" following a debt refinancing....
Casual clothing retailer Eddie Bauer Holdings Inc has completed refinancing a $275m secured term loan, one month after its shareholders rejected a proposed $286m sale to a holding company owned by aff...
Outdoor sportswear maker Eddie Bauer Holdings is proceeding with a private offering of US$75m aggregate principal amount of 5.25% convertible senior notes due 2014....
Charming Shoppes Wednesday (21 March) reported higher fourth-quarter earnings, a cautious first-quarter forecast and the appointment of a new president of its troubled Crosstown Traders direct-to-cons...
- Rana Plaza four years on – Timeline of change
- Why collaboration is key to fashion supply chains
- Industry groups reaffirm commitment to Bangladesh
- Trump and Brexit get a dose of pragmatism
- Using worker surveys to drive supply chain change
- Adidas to digitalise Speedfactory concept
- Nike filed patent for "reinforced denim"
- M&S extends sourcing deal with Lindsey brothers
- Gap unveils five-year sustainable fibres pledge
- US Q1 in brief – Columbia Sportswear, Amazon
- Global market review of denim and jeanswear – forecasts to 2022
- When Things Go Wrong - A Practical Guide to Managing Common Problems in Apparel Sourcing
- Clothing Market in the Top 5 American Countries to 2021 - Market Size, Development, and Forecasts
- Outdoor performance apparel 2016: A broader perspective
- Southeast Asia strategic sourcing review – a focus on Cambodia, Vietnam and Myanmar