NEW YORK (AP) — Men’s Wearhouse is turning the tables on its recent pursuer, offering to buy Jos. A. Bank for approximately $1.54 billion.
The offer comes less than two weeks after Jos. A. Bank withdrew its $2.3 billion bid for its rival.
Shares of both companies surged in premarket trading on Tuesday.
Men’s Wearhouse Inc. is offering $55 per share for Jos. A. Bank Clothiers Inc. That’s a 9 percent premium to the company’s $50.32 Monday closing price.
A call was placed to Jos. A. Bank for comment.
The combined company would have more than 1,700 stores, according to Men’s Wearhouse.
Men’s Wearhouse lead director Bill Sechrest said in a statement Tuesday that the Houston company’s board reviewed its strategic options after Jos. A. Bank’s buyout bid went public. Sechrest said acquiring Jos. A. Bank has “strategic logic” and could benefit its shareholders, workers and customers.
.Jos. A. Bank sells men’s tailored and casual clothing, sportswear and footwear. While it targets a more established male professional, it’s known for generous promotions like buying one suit or sport coat and getting three for free.
Men’s Wearhouse sells men’s sportswear and suits through its namesake chain of stores, as well as the Moores and K&G retail chains. Recently, the Houston company has been going after younger shoppers with suits featuring slimmer silhouettes. It’s also trying to raise the average ticket price and announced in July that it’s buying the upscale Joseph Abboud brand for about $97.5 million in cash.
The announcement by Men’s Wearhouse comes after Jos. A. Bank dropped its $2.3 billion offer for its competitor on Nov. 15. The Hampstead, Md., company initially made an unsolicited offer of $48 per share for Men’s Wearhouse in September. Men’s Wearhouse rejected the bid in October, calling it “opportunistic” and “inadequate.”