Jos. A. Bank in 2014 acquired privately-held Eddie Bauer, paying more than 13 times the firm’s EBITDA (earnings before interest, taxes, depreciation and amortization), primarily to combat Men’s Warehouse from pursing further its hostile takeover.  Normally companies sell for about thirteen times EBITDA.  Eddie Bauer has 370 retail stores in the USA and Canada, selling casualwear for men, women, and children.  Jos. A Bank paid about $570 million for Eddie Bauer and the deal has provisions that purposefully would discourage a firm from trying to acquire Jos. A. Bank.

Source:  Dana Mattioli and Liz Hoffman, “Jos. A. Bank Strikes Deal for Eddie Bauer,”  Wall Street Journal (February 15, 2014), p. B3.