Men's wear retailer Jos A Bank has offered to buy Men's Wearhouse for US$2.3bn to create the leading men's apparel and sportswear designer, manufacturer and retailer in the US.

Jos A Bank has proposed to buy all of the outstanding shares of Men's Wearhouse for $48 per share in cash.

It believes the proposed transaction will allow its management to "leverage its core competencies and achieve sustainable growth and value creation" for its shareholders while providing a significant premium to Men's Wearhouse stakeholders.

The combined company would capitalise on the relative strengths of each business, offering a larger platform from which both brands can optimise and expand their real estate footprint, strengthen their merchandising and sourcing capabilities, and enhance their multi-channel strategies, Jos A Bank said in a statement. 

"We are hopeful that Men's Wearhouse's board will accept our proposal," said Jos A Bank chairman Robert Wildrick. "We believe Men's Wearhouse's shareholders would want their board to explore with us the immediate and certain value they would receive in a transaction."

"In addition to capturing significant synergies, we believe that a combination would bring together our complementary capabilities to better serve our customers," Wildrick noted.

The transaction is expected to be funded by a combination of cash on Jos A Bank's balance sheet, new equity capital from Golden Gate Capital and debt financing.

The proposal comes after Jos A Bank in June said it was considering strategic opportunities, including potential acquisitions, to boost further growth. Last month, the firm reported a 38.5% decline in second-quarter net income as consumers failed to respond to the US men's wear retailer's promotional efforts.

Men's Wearhouse, meanwhile, lowered its full-year earnings guidance, after one-off charges and a shift in tuxedo rental revenues weighed on second-quarter net profit.