Men’s Wearhouse to buy Jos. A. Bank for $1.8 billionPublished: 3/12/14 @ 12:00
Looks like the best suitor won.
After an extended chase that included overtures on both sides and flirtations with other parties, Men’s Wearhouse and Jos. A. Bank will combine to create the nation’s fourth-largest menswear retail chain.
Men’s Wearhouse Inc. said Tuesday that it’s buying its rival Jos. A. Bank Clothiers Inc. for $1.8 billion. The company will pay $65 a share, a 5 percent premium to Jos. A. Bank’s Monday closing price of $61.83. Jos. A. Bank also said it’s terminating its deal to acquire the parent company of Eddie Bauer, which sells rugged outerwear.
On Tuesday, shares of both companies rose on the news: Men’s Wearhouse’s stock was up nearly 5 percent to $57.14, while shares of Jos. A. Bank increased nearly 4 percent to $64.22.
The acquisition comes after months of the two chains publicly fighting over who would acquire whom. Industry watchers had speculated that a merger was inevitable given the challenges the companies face in the competitive menswear landscape. With more than 1,700 U.S. stores and $3.5 billion in annual sales, the combined companies’ reach in men’s clothing will fall behind only Macy’s, Kohl’s and J.C. Penney.
“Together, Men’s Wearhouse and Jos. A. Bank will have increased scale and breadth,” Doug Ewert, CEO of Men’s Wearhouse, said in a statement.