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.
Sports apparel is worn during workouts or any physical exercise to provide the wearer comfort and style. T-shirts, hoodies, shorts, and tracksuits are typical sport-specific apparel used while playing...
Formal clothing specialist Men's Wearhouse has been ordered to pay $42.6m in damages to a former licensee of its JA Apparel business....
- What the EU-Vietnam trade deal means for duties
- US apparel retailers' January 2016 sales roundup
- US apparel import growth led by Bangladesh
- Esquel backs Chinese Sea Island cotton production
- TPP trade pact in milestone signing by 12 nations
- Sears looks to lift apparel via sourcing changes
- Eco-friendly garment factory opens in Bangladesh
- Bangladesh factory fire renews worker safety fears
- Clothing and sports chains in activewear battle
- Southeast Asia – a strategic sourcing review
- Southeast Asia strategic sourcing review – a focus on Cambodia, Vietnam and Myanmar
- Wearable technology: The future market potential for smart garments and e-textiles
- Global market review of denim and jeanswear – forecasts to 2021
- Wearable Technology Market by Product, Application, Type, & Geography - Global Forecast to 2020
- Practical Price Negotiation