Golden Gate Capital has agreed to sell the parent company of the Eddie Bauer brand to Jos. A. Bank Clothiers (NASDAQ: JOSB) for an enterprise value of $825 million. Goldman Sachs is helping finance the sale. $564 million is to be paid in cash, with the remaining $261 million to be paid in stock. Another $50 million in cash could also be earned based on Eddie Bauer's EBITDA for fiscal 2014. Following completion of the sale, Golden Gate will retain a 16.6% stake in the company and have the right to designate two directors to its Board.
Eddie Bauer's PE history goes back to 2007, when the then-publicly traded company received a $614 million acquisition offer from Golden Gate and Sun Capital Partners, inlcuding about $328 million of debt. Shareholders rejected the offer. Two years later Eddie Bauer filed for bankruptcy, with CCMP Capital Advisors sparking an auction for the company with a $202 million bid, which was topped by an ultimately successful $286 million offer from Golden Gate.