Eddie Bauer Holdings Inc. is under new ownership.
The company, No. 46 in the Internet Retailer Top 500 Guide to Retail Web Sites, has been acquired by Eddie B Holding Corp., a company owned by affiliates of investment banking firms Sun Capital Partners Inc. and Golden Gate Capital.
The total value of the deal is approximately $614 million, including debt to be repaid of approximately $328 million, as of Sept. 30. The sale is the culmination of an exploration of strategic alternatives initiated by Eddie Bauer in May 2006, the company says.
“We believe that the transaction will provide Eddie Bauer with new resources and the time necessary to execute our turnaround strategy,” says Eddie Bauer CEO Fabian Mansson. “We look forward to partnering with Sun Capital and Golden Gate, who bring extensive experience in the retail and catalog sectors, to take our company to the next level and to capitalize on the potential of the Eddie Bauer brand."
The acquisition of Eddie Bauer by Sun Capital and Golden Gate is the latest in series of apparel-related acquisitions for the venture capital firms.
San Francisco-based Golden Gate Capital earlier added Venus Swimwear Inc., WinterSilks LLC and Venus Manufacturing to the retail brands in its Catalog Holdings Inc. portfolio.
In May Sun Capital, Boca Raton, FL, announced that one of its affiliate companies, LV Catalog Holding Corp., had acquired Lillian Vernon from Direct Holdings Worldwide Inc. Golden Gate Capital acquired Newport News in June 2004, Spiegel in July 2004, Appleseed’s and Draper’s & Damon’s in November 2005, Norm Thompson, Solutions and Sahalie in March of this year, and Carabella and AB Lambdin in September. The company’s latest acquisition prior to Eddie Bauer was Haband Inc., a catalog, online and three-store retailer that focuses on the value-conscious, over-50 market, in October.
"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,” says Gary Talarico, managing director of Sun Capital. “We are particularly excited about the combination of the considerable experience of our respective firms in retailing, apparel and direct marketing.”
The deal, which was approved by the Eddie Bauer board of directors, is expected to be completed by the first quarter in 2007.
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