It's been rumored that VFC has been looking to acquire a speciality outdoor apparel retailer, Eddie Bauer has been named specifically. Will VFC anounce it's purchase of EB soon? Is there any coincidence that EBHI is up over 15% this week on no news?
No, the announcement today will put an end to that rumor. EB is being acquired by an affiliate of a private equity firm for $286 million plus debt assumption. I don't think VF will pull the trigger on another acquisition unless their stringent criteria is met or nearly met. They are probably better off sitting on their assets and waiting for a softening of the economy and some of the marginal players to become more attractive. Just my opinion.