Make us your home page
Instagram

Men's Wearhouse wins, will buy Jos. A. Bank

FILE - MARCH 11: According to reports, Mens Wearhouse is nearing a deal to acquire Jos. A. Bank for $1.8 billion in cash. NEW YORK, NY - JANUARY 06:  A man walks past a Men’s Warehouse store on January 6, 2014 in New York City. Men’s Warehouse is currently pursuing a hostile takeover of competitor Jos. A Bank, which also sells men’s suits and buisness wear.  (Photo by Andrew Burton/Getty Images) 461462737

Getty Images

FILE - MARCH 11: According to reports, Mens Wearhouse is nearing a deal to acquire Jos. A. Bank for $1.8 billion in cash. NEW YORK, NY - JANUARY 06: A man walks past a Men’s Warehouse store on January 6, 2014 in New York City. Men’s Warehouse is currently pursuing a hostile takeover of competitor Jos. A Bank, which also sells men’s suits and buisness wear. (Photo by Andrew Burton/Getty Images) 461462737

NEW YORK — 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 men's wear retail chain.

Men's Wearhouse Inc. said Tuesday that it's buying rival Jos. A. Bank Clothiers Inc. for $1.8 billion. Men's Wearhouse will pay $65 a share, a 5 percent premium over 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.

The acquisition comes after months of the two chains publicly fighting over who would acquire whom. The combined company's 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," said Doug Ewert, president and CEO of Men's Wearhouse.

Jos. A. Bank made the first move in October, offering to buy its larger rival for $2.3 billion. Men's Wearhouse shot down that offer and turned the tables, offering to buy its rival for $1.54 billion. But after Jos. A. Bank turned down that bid, Men's Wearhouse increased its offer to $1.6 billion, and then again to $1.78 billion.

In the middle of the back-and forth, Jos. A. Bank said last month that it was buying Everest Holdings LLC, the parent company of Eddie Bauer. But the company left the door open for a deal with Men's Wearhouse by saying if it received a superior acquisition offer, it would pay a termination fee to end the Eddie Bauer deal.

Despite the rough courting period, both companies say they expect a smooth integration. In a joint press release, they said shareholders of both companies will benefit from about $100 million to $150 million in savings realized over three years as the company streamlines its duplicative corporate function and improves sourcing and merchandising.

"Our board has been rigorously focused on pursuing a path for our shareholders that maximizes value created," said Robert N. Wildrick, chairman of Jos. A. Bank's board.

Analysts say there's a bright future for the combined company. The suit business, which generated $2.3 billion in revenue last year, has been relatively healthy. It's been up 4 percent over the past three years, according to market research firm NPD Group, fueled in part by tight-fitting suits that have attracted young males.

by the numbers

$1.8 billion

Amount Men's Wearhouse is paying to acquire

Jos. A. Bank, paying $65 per share

$57.14 Closing stock price Tuesday for Men's Wearhouse, up nearly 5 percent

$64.22 Closing stock price Tuesday for Jos. A. Bank, up nearly 4 percent

1,700 Combined U.S. stores for the two chains

$3.5b Combined annual sales

Men's Wearhouse wins, will buy Jos. A. Bank 03/11/14 [Last modified: Tuesday, March 11, 2014 7:10pm]
Photo reprints | Article reprints

Copyright: For copyright information, please check with the distributor of this item, Associated Press.
    

Join the discussion: Click to view comments, add yours

Loading...
  1. Strategic Property Partners launches website for Water Street Tampa

    Business

    Strategic Property Partners has launched its official website for Water Street Tampa, its 53-acre redevelopment project in downtown Tampa Tuesday.

    Strategic Property Partners on Tuesday announced the name of its new development: Water Street Tampa. [Photos courtesy of SPP]
  2. ReliaQuest CEO Brian Murphy named sole Tampa Bay winner in EY state entrepreneur contest

    Business

    ReliaQuest founder and CEO Brian Murphy was named one of nine winners statewide and the only one from the Tampa Bay area in the Ernst and Young Entrepreneur Of The Year 2017 Florida Awards program. Murphy won in the IT security division after starting ReliaQuest in 2007. Five of the nine winners were from the Miami …

    Tampa's ReliaQuest founder and CEO Brian Murphy was named one of nine winners statewide and the only one from the Tampa Bay area in the Ernst and Young Entrepreneur Of The Year 2017 Florida Awards program. Murphy won in the IT security division after starting ReliaQuest in 2007.
  3. U.S. Rep. Charlie Crist and estranged wife Carole put Beach Drive condo on the market

    Real Estate

    ST. PETERSBURG — U.S. Rep. Charlie Crist and his estranged wife, Carole, have put their Beach Drive condo on the market for $1.5 million.

    Former Florida Gov. and current U.S. Rep. Charlie Crist and his estranged wife, Carole, have put their condo in downtown St. Petersburg on the market for $1.5 million. [Courtesy of Rhonda Sanderford]
  4. First WannaCry, now cyberattack Petya spreads from Russia to Britain

    Business

    Computer systems from Russia to Britain were victims of an international cyberattack Tuesday in a hack that bore similarities to a recent one that crippled tens of thousands of machines worldwide.

    A computer screen cyberattack warning notice reportedly holding computer files to ransom, as part of a massive international cyberattack, at an office in Kiev, Ukraine, on Tuesday.  A new and highly virulent outbreak of malicious data-scrambling software appears to be causing mass disruption across Europe.
[Oleg Reshetnyak via AP]