Traverse City Record-Eagle

Business

November 27, 2013

Men's Wearhouse makes $1.54B bid for Jos. A. Bank

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.”

Text Only

the BIZ

AP Video
Raw: More Than 100,000 Gather for Easter Sunday Raw: Greeks Celebrate Easter With "Rocket War" Police Question Captain, Crew on Ferry Disaster Raw: Orthodox Christians Observe Easter Rite Ceremony Marks 19th Anniversary of OKC Bombing Raw: Four French Journalists Freed From Syria Raw: Massive 7.2 Earthquake Rocks Mexico Captain of Sunken SKorean Ferry Arrested Raw: Fire Destroys 3 N.J. Beachfront Homes Raw: Pope Presides Over Good Friday Mass Raw: Space X Launches to Space Station Superheroes Descend on Capitol Mall Man Charged in Kansas City Highway Shootings Obama Awards Navy Football Trophy Anti-semitic Leaflets Posted in Eastern Ukraine Raw: Magnitude-7.2 Earthquake Shakes Mexico City Ceremony at MIT Remembers One of Boston's Finest Raw: Students Hurt in Colo. School Bus Crash Deadly Avalanche Sweeps Slopes of Mount Everest
Hyperlocal Search
Premier Guide
Find a business

Walking Fingers
Maps, Menus, Store hours, Coupons, and more...
Premier Guide