Takover target Men's Wearhouse has turned the tables on rival Jos A Bank Clothiers by offering to acquire the men's apparel business for US$1.2bn. 

Men's Wearhouse has offered to acquire all of the outstanding shares of Jos A Bank for $55.00 per share in cash.

The proposal represents 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.

Bill Sechrest, lead director of the board of Men's Wearhouse said: "After a thorough review, our board concluded that an acquisition of Jos A Bank by Men's Wearhouse has strategic logic and the potential to deliver substantial benefits to our respective shareholders, employees and customers."

President and CEO Doug Ewert added: "Our compelling proposal provides Jos A Bank's shareholders with a substantial premium and immediate liquidity for their investment."

The transaction, he noted, would be substantially accretive to Men's Wearhouse's earnings in year one, giving a combined company with a strong balance sheet and the operational flexibility to successfully execute on its strategic plan.

Jos A Bank, meanwhile, has said its board of directors, with the assistance of its financial and legal advisors, will evaluate the proposal and respond in due course.

The counter move comes a week after Jos A Bank dropped its $2.3bn takeover offer for Men's Wearhouse, but said still believed a transaction would be in the best interest of shareholders.