Are Men's Wearhouse and Jos. A Bank suiting up for a merger?
Men's Wearhouse has offered to buy Jos. A Bank — just two months after it rejected Jos. A Bank's own unsolicited $2.3 billion bid for Men's Wearhouse. (Via YouTube / Men's Wearhouse, YouTube / Jos. A Bank)
The lead director of the board of Men's Wearhouse said in a statement, "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.”
According to CNN, Men's Wearhouse's offer values Jos. A Bank at $1.5 billion, which adds up to $55 a share — about a 9 percent premium from its close on Monday.
And that's 32 percent above Jos. A Bank's price in October, when it tried to buy Men's Wearhouse in October. (Via The New York Times)
If this merger does go through, the two companies will definitely like the way they look.
"The proposal has been delivered to bank's board, and could make Men's Wearhouse the fourth largest men's apparel retailer in the country." (Via KNSD)
Forbes points out the two combined would have 1,700 locations and rake in more than $3.5 billion in annual sales. Jos. A Bank would reportedly continue to operate with its current name and locations.
Men's Wearhouse says it plans to finance the merger with existing cash from its balance sheet and borrowed money.