Men's Wearhouse plans to acquire Jos. A. Bank for $1.8 billion, the companies announced Tuesday, a deal that creates a heavyweight in men's retail and likely concludes a lively takeover saga.
Men's Wearhouse, the larger of the two chains, agreed to pay $65 per share for Jos. A. Bank, to create a single company with more than 1,700 stores in the US and about 23,000 employees.
The deal will enable $100-$150 million in cost savings over three years from purchasing efficiencies, streamlined customer service and reduced marketing spending, the companies said in a news release.
Both retailers specialize in men's suits and other professional and athletic attire.
Some observers have said the deal could give the merged company greater pricing pressure given that their client base is so similar.
The two companies began maneuvering in October, when Jos. A. Bank made an unsolicited offer for Men's Wearhouse.
Men's Wearhouse, which quickly rejected the Jos. A. Bank bid, returned the favor in November with its own unsolicited offer that was turned down. Men's Wearhouse subsequently raised its bid and launched a hostile campaign in January.
Jos. A. Bank rejected those approaches and announced on February 14 that it was acquiring Everest Holdings, the parent of another retailer, Eddie Bauer, in a move that some Jos. A. Bank shareholders criticized as a tactic to scuttle a deal with Men's Wearhouse.
In announcing their deal Tuesday, Jos. A. Bank and Men's Wearhouse said the Everest deal was nullified.
Jos. A. Bank has previously said a termination of the Everest deal would require a breakup fee. A person familiar with the situation said that fee is about $48 million.
Men’s Wearhouse plans to acquire Jos. A. Bank for $1.8 billion, the companies announced Tuesday, a deal that creates a heavyweight in men’s retail and likely concludes a lively takeover saga.
Men’s Wearhouse, the larger of the two chains, agreed to pay $65 per share for Jos. A. Bank, to create a single company with more than 1,700 stores in the US and about 23,000 employees.
The deal will enable $100-$150 million in cost savings over three years from purchasing efficiencies, streamlined customer service and reduced marketing spending, the companies said in a news release.
Both retailers specialize in men’s suits and other professional and athletic attire.
Some observers have said the deal could give the merged company greater pricing pressure given that their client base is so similar.
The two companies began maneuvering in October, when Jos. A. Bank made an unsolicited offer for Men’s Wearhouse.
Men’s Wearhouse, which quickly rejected the Jos. A. Bank bid, returned the favor in November with its own unsolicited offer that was turned down. Men’s Wearhouse subsequently raised its bid and launched a hostile campaign in January.
Jos. A. Bank rejected those approaches and announced on February 14 that it was acquiring Everest Holdings, the parent of another retailer, Eddie Bauer, in a move that some Jos. A. Bank shareholders criticized as a tactic to scuttle a deal with Men’s Wearhouse.
In announcing their deal Tuesday, Jos. A. Bank and Men’s Wearhouse said the Everest deal was nullified.
Jos. A. Bank has previously said a termination of the Everest deal would require a breakup fee. A person familiar with the situation said that fee is about $48 million.