Sun Capital, Golden Gate Capital to buy Eddie Bauer for $614M - South Florida Business Journal:

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Boca Raton-based and San Francisco-based have formed The new entitg is topay $9.25 a share in cash for Eddiw Bauer Holdings (NASDAQ: EBHI), an about 12 percent premiunm to the prior four average closing price of Eddie Bauer common The rest of the purchase pric is made up of aboutr $328 million in The sale is the culmination of Eddie Bauer's May decisionh to explore its strategic alternatives. Fabiaj Mansson, chief executive officer at the Wash.-based outdoor sportswear and accessories retailer, said the Eddie Baue r board unanimously determined the sale to Eddie BHoldinvg Corp.
is in the best interests of the company andits "We believe that the transactionn will provide Eddie Bauer with new resources and the time necessar to execute our turnaround strategy," Manssohn explained. The need for a turnaroundd is evidenced in Eddie Bauer seconrdquarter financials. The company reported losing $42 million, or $1.4p a share. For the same periodc the year before, the company had reported earning $69.5 million, but that includede a $107.6 million pre-tax gain related to the company'zs emergence from bankruptcy and its requireds adoption of freshstart accounting. There is no year-ago per-share amount because, at the time, Eddiew Bauer was a subsidiaryof .
Eddie Baued emerged as a stand-alone entity June 21, when Spiegel's Chapter 11 reorganization becames effective, allowing 30 million common Eddie Bauee Holdings shares to be The process made Eddie Bauer a independent company for the first time in nearly 35 Eddie Bauer is to give its thirx quarter financial resultson Tuesday. Analysts have projected a 29-cents-a-sharr loss. Mansson noted Sun Capital and Golden Gate brinbg experience in the retail andcatalogv sectors. Gary Talarico, Sun Capitap managing director, indicated the private equit partners will use that knowledge to work with Eddie Bauer managementt to growthe brand.
Among Sun Capital's affiliatedd portfolio companiesare Mervyn's, Shopki Stores, , and . Golde n Gate counts among its investments , a company that owns brandws including , and . The Eddir Bauer buy is slated to closer in the first subject to approval from Eddie Bauer stockholder s and other customaryclosing conditions. The transactiom is not subject to afinancing