American Eagle acquires Todd Snyder for $11m in cash and stock

Endaba Group

Todd Snyder’s upscale menswear brand Tailgate is a vintage sports-inspired brand with a college-town store concept. There is currently one store in Iowa, near the Iowa State college campus. American Eagle Outfitters acquired the business for $11m in cash and stock. Its collegiate campus concept appeal sealed the deal as Chad Kessler, Global Brand President for American Eagle explained: “[as] American eagle is also targeting a college customer, we see a synergy between this localised college concept where we can also offer curated jeans and other American eagle products.” Kessler sees a potentially large rollout for Tailgate and is planning to open two to three stores in 2016 and eventually increase that to 200. American Eagle currently has over 1,000 stores in the US and overseas.

The acquisition includes tailgate Clothing Co. and Todd Snyder New York, the premium menswear brand established in 2011. Included in the deal, Snyder will join American Eagle as Executive Vice President, reporting to Kessler. Jimmy Olsson, Snyder’s Chief Executive Officer and President is also included in the deal, joining the company as Vice President. He will continue to run the day-to-day operations of Tailgate and Todd Snyder New York.