Jos A Bank Clothiers is buying the parent company of Eddie Bauer in a cash-and-stock deal valued at $US825 million ($A923 million) that will help strengthen its men's wear business and diversify its offerings.
The deal comes as Jos A Bank is being pursued by rival Men's Wearhouse Inc.
Shares of Jos A Bank fell more than 3 per cent in Friday's premarket trading as investors may believe the Eddie Bauer deal makes a transaction with Men's Wearhouse less likely.
Men's Wearhouse shares fell almost 9 per cent ahead of the market opening.
Jos A Bank said on Friday that it struck a deal with Everest Topco LLC to buy Everest Holdings LLC, Eddie Bauer's parent company. Everest Topco is part of Golden Gate Capital.
Jos A Bank said it has been identifying possible acquisition candidates over the past two years and that Eddie Bauer was one of the first buyout targets it considered.
Eddie Bauer, founded in 1920, sells men's and women's clothing and accessories. Its 2013 revenue is estimated to be between $US885 million and $US895 million.
