A bid of $1.8 billion suits Jos A Bank just fine


NEW YORK (AP) — The jacket finally fits: Men’s Wearhouse is buying rival Jos. A. Bank for $1.8 billion.

agreement ends a months-long back and forth. The combined company will
have more than 1,700 U.S. stores. And the Jos. A. Bank outlets will keep
their name and possibly keep their "buy one suit and get three free"
Men’s Wearhouse Inc. announced Tuesday that it will pay $65
per share, a 5 percent premium to Jos. A. Bank Clothiers Inc.’s most
recent closing price.
Jos. A. Bank got the ball rolling in October
when it offered to buy its larger rival for $2.3 billion. Men’s
Wearhouse scoffed at that offer, and turned the tables, offering to buy
its rival for $1.54 billion.
By early March, Men’s Wearhouse had
an offer of $63.50 per share on the table but said it may raise the bid
to $65 per share if some conditions were met.
Jos. A. Bank also
said Tuesday that it was terminating its deal to acquire the parent
company of Eddie Bauer, which sells rugged outerwear. That deal was
announced on Feb. 14, but Jos. A. Bank left the door open. It said that
if it received a superior acquisition offer, it would pay a termination
fee to end the Eddie Bauer deal.
"Together, Men’s Wearhouse and
Jos. A. Bank will have increased scale and breadth, and Jos. A. Bank’s
strong brand and complementary business model will broaden our customer
reach," Doug Ewert, president and CEO of Men’s Wearhouse, said in a
Both companies said that the deal would complement each
other’s business models, and better serve an expanded customer base in
more locations and improve its sourcing and merchandising capabilities.
They expect a smooth integration with no rebranding or remodeling required. Jos. A. Bank’s store banner
will remain in place.
A. Bank, based in Hampstead, Md., sells men’s tailored and casual
clothing, sportswear and operates 623 stores in 44 states and the
District of Columbia. While it gears to a more established male
professional, it’s known for generous promotions like buying one suit or
sport coat and getting three for free.
Men’s Wearhouse sells
men’s sportswear and suits through its namesake chain of stores, as well
as the Moores and K&G retail chains. It runs more than 1,200 stores
and is also in the tuxedo-rental business. Recently, it’s been going
after younger shoppers with suits with slimmer silhouettes. It’s also
trying to raise the average ticket price and announced in July that it’s
buying upscale Joseph Abboud brand for about $97.5 million in cash.
The transaction is expected to close by the third quarter.
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