US: Jos A Bank Clothiers rejects Men's Wearhouse bid
Last month, Men's Wearhouse made an offer to acquire Jos A Bank Clothiers' apparel business for US$1.2bn, at $55.00 per share in cash.
However, in a statement today (23 December), Jos A Bank said that after thorough consideration by its board, and with assistance from its legal advisors, it has "unanimously rejected" the proposal.
The company said the price proposed by Men's Wearhouse "significantly undervalued" the business and its near and long-term potential and was "not in the best interest of the company's shareholders". The firm reiterated that it is reviewing all alternatives regarding potential strategic acquisition opportunities.
"Our board undertook a thorough review and determined that the per share consideration in the proposal made to us by Men's Wearhouse was simply not in the best interest of our shareholders," said chairman Robert Wildrick.
The proposal represented a 45% premium over Jos A Bank's unaffected enterprise value and a 32% premium over its closing share price on 8 October - the day before Jos A Bank offered to acquire Men's Wearhouse.
The counter move by Mens Wearhouse came a week after Jos A Bank dropped a $2.3bn takeover offer for its rival.
The Global market review of Workwear which was first published by just-style in 2010 proved to be one of our best selling reports to date. Hardly surprising then, that there has been much anticipation...
US men's apparel and footwear business Jos A Bank Clothiers said it is delivering results on its top and bottom line performance, despite booking a slight drop in fourth-quarter earnings today (2 Apri...
The Men's Wearhouse suffered an increased adjusted net loss in the fourth quarter, with retail sales in particular hit by bad weather and poor consumer sentiment....
Men's Wearhouse has secured a deal to acquire US men's apparel and footwear business Jos A Bank Clothiers following a five-month merger tussle between the two firms....
Men's Wearhouse has entered into a non-disclosure agreement with US men's apparel and footwear business Jos A Bank Clothiers under which they could discuss a potential merger....
- PSF 2014: No one size fits all in apparel sourcing
- PSF 2014: Shifting focus from cost to consumer
- Garment manufacturers eye Myanmar outsourcing
- Bangladesh industry development moving backwards
- Teen retail being rocked by fast fashion headwinds
- Adidas China supplier in discussions over strike
- Gap issues mirror widespread industry challenges
- Bangladesh PM asks clothing buyers to pay more
- H&M "pushing the process" on sustainable fashion
- Adidas plans mobile phone hotline at all suppliers
- Ethiopia – the emerging textile and clothing industry
- Antimicrobial fibres, fabrics and apparel: innovative weapons against infection
- Trade and trade policy: clothing imports, consumer expenditure and trends in five emerging markets: Brazil, Colombia, India, Kazakhstan and Peru, 4th quarter 2013
- Sustainable Textiles for Apparel: Fact, Fiction and Future Prospects
- Jeans in Italy