With today being Valentine’s Day, it’s no surprise love is in the air. And that love couldn’t be any more evident than with men’s clothing retailers. Because when one lover turns down your attempt of a takeover, you move on to the next best option, right? That appears to be the case with Jos. A. Bank, as the company announced today that it would buy Eddie Bauer.
Jos. A. Bank’s purchase of Eddie Bauer is a way for the men’s retailer to diversify itself and ward off a hostile takeover by Men’s Wearhouse, Bloomberg reports.
The deal, valued at $825 million, means Jos. A will pay $564 million in cash and about 4.7 million new shares of the company’s common stock to Golden Gate Capital, the owner of Eddie Bauer.
In a statement about the purchase, Jos. A. Bank says the coupling will create a “substantial opportunities for growth and synergies while allowing two iconic American brands to share core competencies and demographically similar customer bases.”
Consumerist first reported that Jos. A. Bank was toying with the idea of purchasing Eddie Bauer early this month. At the time, analysts and experts were puzzled by the possible deal. Eddie Bauer filed for bankruptcy in 2009 before being purchased by private equity firm Gold Gate Capital.
The new purchase isn’t likely to stop the Jos. A. Bank and Men’s Wearhouse saga. Over the past several months the companies have been going back and forth trying to buy the other.
In late December, Jos. A. Bank rejected an offer for $55 per share. In September, they made a $48 per share offer to buy Men’s Wearhouse, which was rejected.
Last month, Men’s Wearhouse took an offer straight to Jos. A. Bank’s shareholders. The company’s board refused to discuss the offer, leading to once investor, Eminence Capital, to file suit against the board for refusing to consider the bid and for making changes to make it harder for one investor to take control of the company.