Authentic Brands to Acquire Eddie Bauer

Authentic Brands Group is adding Eddie Bauer, one of the best-known outdoor gear retailers, to its portfolio of brands. “Eddie Bauer has a 100-year history of unparalleled authority in the outdoor space,” said Jamie Salter, founder and CEO of ABG, in a statement. “The global outdoor market opportunity has grown exponentially over the last year, and we are ready to hit the ground running and guide this brand into new frontiers," he added. Operating company Sparc Group, a joint venture between ABG and mall operator Simon Property Group, is the buyer. Private equity firm Golden Gate Capital is the seller. The price was not disclosed. Golden Gate has owned Eddie Bauer since 2009, when it took control with an all-cash bid of $286 million at the time. The lifestyle brand, associated with activities ranging from hiking to camping while imploring people to "live their adventure," will join an ever-expanding portfolio of U.S. legacy retailers that includes Brooks Brothers, Nautica, Aéropostale, Forever 21 and Lucky Brand. Under the arrangement, Authentic Brands will own Eddie Bauer's intellectual property while the acquisition's operations will be merged with Sparc. It's a group that will generate nearly $8.6 billion in systemwide sales annually following the close of the deal, which is expected by June 1. Celebrating 100 years The retailer has a rich history that dates back to its founding in 1920 in downtown Seattle by its namesake Eddie Bauer. Bauer, who was born in 1899 on Orcas Island in Puget Sound and died in 1986, is credited with inventing the down jacket, a wardrobe staple, after suffering from hypothermia during a fishing trip. In 1968, the founder sold the enterprise, which at one point made parkas for the military during World War II and eventually entered the catalogue business. Eddier Bauer landed in the hands of General Mills, which owned it until 1988, when it sold the banner to Spiegel. After a couple of trips through bankruptcy court in the 2000s, Golden Gate Capital purchased the outdoors brand in 2009, which beat out competing bidders, including Hilco Consumer Capital. At the time, Hilco was led by Authentic Brands' founder Salter. What's next? Eddie Bauer will retain its headquarters in Seattle and continue to operate under the leadership of its president Damien Huang. “We are excited to partner with ABG and SPARC, who recognize the significant opportunities ahead and are well-positioned to help us maximize the brand’s full potential and expand our global presence as a leader among outdoor and active brands,” Huang said in a statement. Authentic Brands said it plans to exploit Eddie Bauer's technical performance attributes and extend it into new outdoor categories and points of distribution. Collaborations, as is the case for so many ABG brands, will also figure in. ABG also sees international growth as a key element of the chain's strategy going forward, with expansion eyed in Latin America, Europe and Asia-Pacific. Near-term, Eddie Bauer is planning launches for China and South Korea. In addition, Authentic Brands said it will continue Eddie Bauer programs like One Outside, which aims to make the outdoors more accessible to underrepresented communities. It will also continue its partnership with American Forests, a 25-year initiative that has planted some eight million trees in the U.S. and Canada. Today the banner operates some 300 stores, largely located in the U.S. and Canada, and an ecommerce site. ABG-Owned Sports Illustrated Wades Into TV and Film Production