Jos. A. Bank Clothiers Inc. is buying the parent company of Eddie Bauer in a cash-and-stock deal valued at $825 million that will help strengthen its men's wear business and diversify its offerings.
The deal comes as Jos. A. Bank is being is being pursued by rival Men's Wearhouse Inc.
Jos. A. Bank said Friday that it struck a deal with Everest Topco LLC to buy Everest Holdings LLC, Eddie Bauer's parent company. Everest Topco is part of Golden Gate Capital.
Jos. A. Bank said it has been identifying possible acquisition candidates over the past two years and that Eddie Bauer was one of the first buyout targets it considered.
Eddie Bauer, founded in 1920, sells men's and women's clothing and accessories. Its 2013 revenue is estimated to be between $885 million and $895 million. Jos. A. Bank, established in 1905, has 629 stores in 44 states and the District of Columbia.