Make us your home page
Instagram

Men's Wearhouse wins, will buy Jos. A. Bank

FILE - MARCH 11: According to reports, Mens Wearhouse is nearing a deal to acquire Jos. A. Bank for $1.8 billion in cash. NEW YORK, NY - JANUARY 06:  A man walks past a Men’s Warehouse store on January 6, 2014 in New York City. Men’s Warehouse is currently pursuing a hostile takeover of competitor Jos. A Bank, which also sells men’s suits and buisness wear.  (Photo by Andrew Burton/Getty Images) 461462737

Getty Images

FILE - MARCH 11: According to reports, Mens Wearhouse is nearing a deal to acquire Jos. A. Bank for $1.8 billion in cash. NEW YORK, NY - JANUARY 06: A man walks past a Men’s Warehouse store on January 6, 2014 in New York City. Men’s Warehouse is currently pursuing a hostile takeover of competitor Jos. A Bank, which also sells men’s suits and buisness wear. (Photo by Andrew Burton/Getty Images) 461462737

NEW YORK — Looks like the best suitor won.

After an extended chase that included overtures on both sides and flirtations with other parties, Men's Wearhouse and Jos. A. Bank will combine to create the nation's fourth-largest men's wear retail chain.

Men's Wearhouse Inc. said Tuesday that it's buying rival Jos. A. Bank Clothiers Inc. for $1.8 billion. Men's Wearhouse will pay $65 a share, a 5 percent premium over Jos. A. Bank's Monday closing price of $61.83. Jos. A. Bank also said it's terminating its deal to acquire the parent company of Eddie Bauer, which sells rugged outerwear.

The acquisition comes after months of the two chains publicly fighting over who would acquire whom. The combined company's reach in men's clothing will fall behind only Macy's, Kohl's and J.C. Penney.

"Together, Men's Wearhouse and Jos. A. Bank will have increased scale and breadth," said Doug Ewert, president and CEO of Men's Wearhouse.

Jos. A. Bank made the first move in October, offering to buy its larger rival for $2.3 billion. Men's Wearhouse shot down that offer and turned the tables, offering to buy its rival for $1.54 billion. But after Jos. A. Bank turned down that bid, Men's Wearhouse increased its offer to $1.6 billion, and then again to $1.78 billion.

In the middle of the back-and forth, Jos. A. Bank said last month that it was buying Everest Holdings LLC, the parent company of Eddie Bauer. But the company left the door open for a deal with Men's Wearhouse by saying if it received a superior acquisition offer, it would pay a termination fee to end the Eddie Bauer deal.

Despite the rough courting period, both companies say they expect a smooth integration. In a joint press release, they said shareholders of both companies will benefit from about $100 million to $150 million in savings realized over three years as the company streamlines its duplicative corporate function and improves sourcing and merchandising.

"Our board has been rigorously focused on pursuing a path for our shareholders that maximizes value created," said Robert N. Wildrick, chairman of Jos. A. Bank's board.

Analysts say there's a bright future for the combined company. The suit business, which generated $2.3 billion in revenue last year, has been relatively healthy. It's been up 4 percent over the past three years, according to market research firm NPD Group, fueled in part by tight-fitting suits that have attracted young males.

by the numbers

$1.8 billion

Amount Men's Wearhouse is paying to acquire

Jos. A. Bank, paying $65 per share

$57.14 Closing stock price Tuesday for Men's Wearhouse, up nearly 5 percent

$64.22 Closing stock price Tuesday for Jos. A. Bank, up nearly 4 percent

1,700 Combined U.S. stores for the two chains

$3.5b Combined annual sales

Men's Wearhouse wins, will buy Jos. A. Bank 03/11/14 [Last modified: Tuesday, March 11, 2014 7:10pm]
Photo reprints | Article reprints

Copyright: For copyright information, please check with the distributor of this item, Associated Press.
    

Join the discussion: Click to view comments, add yours

Loading...
  1. Massachusetts firm buys Tampa's Element apartment tower

    Real Estate

    TAMPA — Downtown Tampa's Element apartment tower sold this week to a Massachusetts-based real estate investment company that plans to upgrade the skyscraper's amenities and operate it long-term as a rental community.

    The Element apartment high-rise at 808 N Franklin St. in downtown Tampa has been sold to a Northland Investment Corp., a Massachusetts-based real estate investment company. JIM DAMASKE  |  Times
  2. New York town approves Legoland proposal

    News

    GOSHEN, N.Y. — New York is one step closer to a Lego dreamland. Goshen, a small town about fifty miles northwest of the Big Apple, has approved the site plan for a $500 million Legoland amusement park.

    A small New York town, Goshen approved the site plan for a $500 million Legoland amusement park. Legoland Florida is in Winter Haven. [Times file  photo]
  3. Jordan Park to get $20 million makeover and new senior housing

    Real Estate

    By WAVENEY ANN MOORE

    Times Staff Writer

    ST. PETERSBURG —The St. Petersburg Housing Authority, which bought back the troubled Jordan Park public housing complex this year, plans to spend about $20 million to improve the 237-unit property and construct a new three-story building for …

    Jordan Park, the historic public housing complex, is back in the hands of the St. Petersburg Housing Authority. The agency is working to improve the 237-unit complex. But the latest plan to build a new three-story building for seniors will mean 31 families have to find new homes. [LARA CERRI   |   Tampa Bay Times]
  4. Coming soon at two Tampa Bay area hospitals: a cancer treatment that could replace chemo

    Health

    A new cancer treatment that could eventually replace chemotherapy and bone marrow transplants — along with their debilitating side effects — soon will be offered at two of Tampa Bay's top-tier hospitals.

    Dr. Frederick Locke at Moffitt Cancer Center in Tampa is a principal investigator for an experimental therapy that retrains white blood cells in the body's immune system to fight cancer cells. The U.S. Food and Drug Administration approved these so-called "CAR-T" treatments for adults this month. In trials, 82 percent of cases responded well to the treatment, and 44 percent are still in remission at least eight months later, Locke said. [CHRIS URSO   |   Times]
  5. Regulator blasts Wells Fargo for deceptive auto insurance program

    Banking

    Wells Fargo engaged in unfair and deceptive practices, failed to properly manage risks and hasn't set aside enough money to pay back the customers it harmed, according to a confidential report by federal regulators.

    Wells Fargo engaged in unfair and deceptive practices, failed to properly manage risks and hasn't set aside enough money to pay back the customers it harmed, according to a confidential report by federal regulators.
[Photo by Spencer Platt/Getty Images, 2017]