Jos. A Bank to buy Eddie Bauer - O'Keeffe and O'Malley

Jos. A Bank to buy Eddie Bauer

Feb 18, 2014

In an effort to stay independent and boost shareholder value, Jos. A Bank announced plans to acquire Eddie Bauer. Both companies sell to the same target audience, but sell different merchandise. This would be the first move into women's apparel for Jos. A. Bank. Estimated Eddie Bauer revenue for 2013 was between $885 and $895 million. The selling price was reported to be $825 million, with $564 in cash, and the balance in stock. The deal is not final, as Jos. A. Bank has the option to back out if it received a superior acquisition offer.

A year ago, Jos. A Bank offered to buy Men's Wearhouse for $2.3 billion. The offer was rejected, and Men's Wearhouse then offered to buy Jos. A. Bank for $1.54 billion. That offer was also turned down.