Sun Capital, Golden Gate Capital acquire Eddie Bauer

Share this content:

Investment firms Sun Capital Partners Inc. and Golden Gate Capital have entered into a definitive agreement to acquire Eddie Bauer Holdings Inc. for $9.25 per share in cash or approximately $614 million.

The board of directors of Eddie Bauer has unanimously approved the deal, which is expected to close in the first quarter of 2007, after it has been approved by the company's stockholders.

In May, Eddie Bauer, Redmond, WA, announced that it intended to explore strategic alternatives, including the sale of the company.

Last June the merchant emerged from Spiegel Inc.'s Chapter 11 reorganization process and became an independent company for the first time in 35 years. It was previously a wholly owned subsidiary of Spiegel Inc., which filed for bankruptcy March 17, 2003.

However, the company's results haven't been promising since it regained independence. In August, Eddie Bauer reported revenue for the second quarter ended July 1 totaled $225.7 million compared to $243.8 million in the previous year. The company's net loss for the second quarter was $42 million, or a loss of $1.40 per diluted share, compared to net income of $69.5 million in the second quarter of 2005. The company is scheduled to announce its third quarter results today.

The deal with Sun Capital Boca Raton, FL, and Golden Gate, San Francisco, represents a 12 percent premium to the prior four weeks' average closing price of Eddie Bauer's common stock.

The transaction includes $328 million in debt to be repaid and will be completed by Eddie Bauer Holding Corp , a company owned by affiliates of Sun Capital and Golden Gate.

Sun Capital and Golden Gate are active investors in the retail and consumer products sectors.

On Friday, Golden Gate announced that it had acquired Venus Swimwear Inc., WinterSilks LLC and Venus Manufacturing. The Venus Swimwear deal follows Golden Gate's September acquisition of Carabella, another swimwear title.

The WinterSilks deal is the latest in a string of acquisitions of baby-boomer oriented titles by San Francisco-based Golden Gate's portfolio company, Catalog Holdings Inc., including Appleseed's in November 2005, Norm Thompson, Solutions and Sahalie in March 2006, and Haband in October 2006.

Sun Capital owns Lillian Vernon, Mervyn's, Shopko Stores, Marsh Supermarkets, Anchor Blue Retail Group and Dim Branded Apparel.


Next Article in Multichannel Marketing

Sign up to our newsletters

Company of the Week

Since 1985, Melissa has helped thousands of companies clean, correct and complete contact data to better target and communicate with their customers. We offer a full spectrum of data quality solutions, including global address, phone, email, and name validation, identify verification - available for batch or real-time processes, in the Cloud or on-premise. Our service bureau provides dedupe, email/phone append and geographic/demographic append services for better targeting and insight. For direct mailers, Melissa offers easy-to-use address management/postal software, list hygiene services and 100s of specialty mailing lists - all with competitive pricing and excellent customer service.

Find out more here »

Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here

Relive the 2017 Marketing Hall of Femme

Click the image above