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Sun Capital, Golden Gate Capital to acquire troubled specialty retailer Eddie Bauer

14 Nov 2006

Eddie B Holding Corp., a company established by Sun Capital Partners and Golden Gate Capital, has agreed to acquire Eddie Bauer Holdings for $9.25 per share in cash. The total transaction value is approximately $614m, including $328m of assumed debt.

Eddie Bauer sells casual sportswear and accessories. The company recently posted its results, showing growing losses and falling sales.

The per share consideration represents an approximate 12 per cent premium to the prior four weeks’ average closing price of Eddie Bauer’s common stock, according to a statement.

Fabian Mansson, chief executive officer of Eddie Bauer, said, ‘Following a comprehensive review process, our board of directors has unanimously determined that the transaction announced today is in the best interests of our company and its stockholders. 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.’

Gary Talarico, managing director of Sun Capital, 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 focuses on leveraged buy-outs, equity, debt, and other investments in companies. The firm has offices in Boca Raton, Los Angeles, New York, London and Shenzhen.

San Francisco-based Golden Gate Capital focuses on investing in change-intensive opportunities.

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