Apparel retailer Eddie Bauer Holdings Inc. agreed to be acquired by Eddie B Holding Corp., a company owned by affiliates of Sun Capital Partners and Golden Gate Capital, for around $614 million, which includes debts of $328 million.

The cash deal will pay shareholders $9.25 a share, a 4.5 percent premium over the clothing and accessories retailer's Friday close.

"We believe that the transaction will provide Eddie Bauer with new resources and the time necessary to execute our turnaround strategy," Chief Executive Fabian Mansson said in a statement Monday.

Private equity firms Sun Capital and Golden Gate own several retail and catalog brands through its affiliates. The company that will make the acquisition is called Eddie B Holding Corp.

The deal is subject to shareholder approval and is expected to close in the first quarter of 2007.

As of July 1, Eddie Bauer operated 267 retail stores and 108 outlet stores in the U.S. and Canada. During the quarter ended July 1, about 27 percent of its $225.7 million in sales came from catalog and online purchases.

Eddie Bauer shares rose 16 cents, or nearly 2 percent, to $9.01 in morning trading on the Nasdaq, where the stock has ranged between $6 and $23.50 over the past year.