Jos. A. Bank Clothiers, the men's clothing retailer, said Friday it has agreed to buy Eddie Bauer for $827.2 million.
Jos. A. will pay $564 in cash and about 4.7 million new shares of common stock of Jos. A. Bank issued to Eddie Bauer's parent company, Everest Topco, at $56 per share.
Eddie Bauer, founded in 1920 in Seattle, sells men's and women's clothing and accessories. Its 2013 revenue is estimated to be between $885 million and $895 million. Jos. A. Bank, established in 1905, has 629 stores in 44 states and the District of Columbia.
The two brands will run independent of each other after the transaction is complete.
The share price represents a premium to Jos. A.'s Thursday closing price of $54.92
In pre-market trading Friday, shares of Jos. A. fell 3% to $53.26.
Jos. A.'s future is also in flux and could be a target of acquisition. Men's Wearhouse pursued last month a $1.61 billion bid to merge the two clothing companies despite Jos. A.'s resistance to the deal. With the popularity of suits waning, investors of Men's Wearhouse have been clamoring for consolidation through acquisitions.
Jos. A. can walk away from the Eddie Bauer deal if its board of directors agrees to accept any unsolicited offer to buy Jos. A.