US: Men's Wearhouse increases Jos A Bank bid
The retailer has submitted a cash tender offer for all outstanding shares of Jos A Bank of US$63.50 per share, up from its previous offer of $57.50 per share.
The move comes just over a week after Jos A Bank revealed plans to buy outdoor wear brand Eddie Bauer from private equity firm Golden Gate Capital in a deal worth $825m.
Jos A Bank, however, left the door open, saying it could terminate the deal if it receives an acquisition offer that would create "greater value for Jos A Bank's shareholders than the Eddie Bauer transaction and issuer tender offer".
In its announcement today, Men's Wearhouse said it could potentially increase its offer price to $65 per share if it is able to conduct limited due diligence, and have access to Jos A Bank's management team. The offer is also conditional on the company terminating its agreement with Eddie Bauer.
Men's Wearhouse CEO Doug Ewert added that, as part of the negotiations, it would be willing to discuss offering Jos A Bank shareholders the opportunity to choose to receive Men's Wearhouse stock for part of its proposal.
Last week, Eminence Capital, a major shareholder in Jos A Bank Clothiers, said the apparel firm's acquisition of Eddie Bauer was a "poor strategic decision" and "destroys shareholder value".
Eminence, which owns a 4.9% stake in Jos A Bank, accused the company of issuing "suspect and misleading financial guidance" in a bid to justify its decision. It also suggested the price paid for Eddie Bauer was too high.
Eddie Bauer LLC - Strategic SWOT Analysis Review provides a comprehensive insight into the company’s history, corporate strategy, business structure and operations. The report contains a detailed SWOT...
The most-read stories on just-style this week included the possible sale of Adidas's Reebok brand, figures that suggest UK textile sector wages and productivity are the lowest of all the country's man...
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...
- 2014: Year in review - Sourcing winners and losers
- 2014: Year in review - Brand winners and losers
- 2014: Year in review - Retail winners and losers
- Bangladesh: Raising the bar on apparel exports?
- Bangladesh: The business benefits of compliance
- Report urges overhaul of Cambodia factory safety
- Bangladesh factory improvements “will take years”
- Bangladesh knitting worker killed by faulty lift
- North Face debuts locally-grown "backyard" hoodie
- Tommy Hilfiger launches solar-powered jacket