Men’s Wearhouse offers to buy Jos. A. Bank
Fremont, Calif. -- Men's Wearhouse has turned the tables on Jos. A. Bank Clothiers, with a proposal to acquire its one-time suitor for approximately $1.54 billion. Men's Wearhouse is offering $55 per share for Jos. A. Bank, which represents nearly a 9% premium to the company's $50.32 Monday closing price.
Jos. A. Bank made an unsolicited $2.3 billion bid in early October for Men’s Wearhouse, which rejected the offer, calling "opportunistic" and "inadequate."
"Following Jos. A. Bank's unsolicited public proposal to acquire Men's Wearhouse, our board of directors evaluated a number of alternatives to deliver value to our shareholders," said Bill Sechrest, lead director of the board of Men's Wearhouse. "After a thorough review, our board concluded that an acquisition of Jos. A. Bank by Men's Wearhouse has strategic logic and the potential to deliver substantial benefits to our respective shareholders, employees and customers.”
Sechrest said that in reaching its decision, Men’s Wearhouse considered a number of factors including its” advantage in scale, growth and performance, long history as a prudent steward of capital, successful acquisition track record and experienced management team.”
“We believe we are the right acquirer for this combination and that our experienced management team is best positioned to execute the integration of our companies and achieve the synergies that would result. We are ready to engage with the Jos. A. Bank's board immediately," Sechrest said.
Jos. A. Bank said Tuesday that its board will evaluate the offer and respond "in due course."