US: Men's Wearhouse secures $1.8bn deal to buy Jos A Bank
The two companies have signed an agreement under which Men's Wearhouse will acquire all of the outstanding shares of common stock of Jos A Bank for US$65 per share in cash, or $1.8bn. The boards of directors of both companies have approved the transaction.
Combined, Men's Wearhouse and Jos A Bank will operate more than 1,700 stores in the US, with around 23,000 employees and and sales of $3.5bn on a pro forma basis.
Men's Wearhouse CEO Doug Ewert said it was "pleased" to have reached the agreement with Jos A Bank, which it believes will deliver "substantial benefits" to their respective shareholders, employees and customers.
"Together, Men's Wearhouse and Jos A Bank will have increased scale and breadth, and Jos A Bank's strong brand and complementary business model will broaden our customer reach," he added. "We expect the transaction will be accretive to Men's Wearhouse's earnings in the first full year."
Men's Wearhouse last week entered into a non-disclosure agreement with Jos A Bank Clothiers under which they discussed a potential merger. The move was a step forward in an ongoing battle over ownership between the two companies, which began with Jos A Bank offering to buy its larger menswear rival.
The agreed price is an improvement on the last bid by Men's Wearhouse of $63.50 in February, which it said would provide Jos A Bank shareholders with a "substantial premium and immediate value".
It did, however, say it would be prepared to increase its offer price to $65 per share if Jos A Bank could demonstrate or Men's Wearhouse could "discover additional value through discussions or limited due diligence".
The saga took a further turn in February when Jos A Bank announced a deal to acquire outdoor wear brand Eddie Bauer, which some industry observers suggested was a move made to ensure it remained independent.
Its tender offer, however, has now been withdrawn as part of the deal with Men's Wearhouse, its said.
Jos A Bank chairman, Robert Wildrick, said: "Our board has been rigorously focused on pursuing a path for our shareholders that maximises value creation. We have been committed to pursuing a range of strategic alternatives to achieve that goal.
"The transaction we are announcing today clearly reflects the success of our efforts, providing a substantial premium over any price at which our stock has ever traded, including a 56% premium since our interest in Men's Wearhouse became public last October, and allowing our shareholders to receive immediate consideration for their holdings."
Jos A Bank's share price was up 3.98% to $64.29 at 12:49 EDT today.
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....
- TPP tariff phase-out guides Vietnam sourcing plans
- How Central America garment sourcing measures up
- How virtual garments could shape fashion retail
- Why fast fashion isn't a case of one size fits all
- Alliance brands "staying the course" in Bangladesh
- Ethiopia opens flagship textile and apparel park
- Amazon Prime Day a big win for apparel
- VF confident on "solid" sustainability roadmap
- Bangladesh denied US GSP re-entry on worker rights
- Inditex and Lenzing sign textile waste pact
- Central America strategic sourcing review - a focus on Guatemala, El Salvador and Honduras
- Southeast Asia strategic sourcing review – a focus on Cambodia, Vietnam and Myanmar
- World Textile and Apparel Trade and Production Trends: the EU - June 2016
- Luxury Goods Retailing in Europe, 2014-2019 ; Market & Category Expenditure and Forecasts, Trends, and Competitive Landscape
- Primark Stores Limited: Retailing - Company Profile & SWOT Analysis