Eddie Bauer to be sold for $286 million

November 13th, 2006

Redmond, WA - Apparel retailer Eddie Bauer has agreed to be purchased by two private equity firms for $286 million in cash, the clothing chain announced Monday.

Apparel retailer Eddie Bauer has agreed to be purchased by two private equity firms for $286 million in cash, the clothing chain announced Monday.

A holding company owned by affiliates of Sun Capital Partners Inc. and Golden Gate Capital will pay $9.25 per share in cash and take on debt of $328 million.

Fabian Mansson, Chief Executive Officer of Eddie Bauer, commented, "Following a comprehensive review process, our Board of Directors has unanimously determined that the transaction announced today is in the best interests of our Company and its stockholders. We believe that the transaction will provide Eddie Bauer with new resources and the time necessary to execute our turnaround strategy. 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 deal is subject to shareholder approval.