Eddie Bauer agrees to buyout by private equity firms

11/13/06 - newratings.com

NEW YORK, November 13 (newratings.com) - Outdoor-apparel retailer Eddie Bauer Holdings Inc (EBHI) Monday announced that it had agreed to be acquired by a holding company owned by affiliates of private equity firms Sun Capital Partners Inc and Golden Gate Capital for about $286 million in cash.

Redmond-based Eddie Bauer Holdings’ shareholders would receive $9.25 per share in cash, representing almost a 5% premium to the company’s closing price on Friday last week. The buyers would also assume debt worth $328 million. The transaction is expected to be completed in the first quarter of 2007. Eddie Bauer Holdings’ chief executive Fabian Mansson said in a statement, "We believe that the transaction will provide Eddie Bauer with new resources and the time necessary to execute our turnaround strategy."