Tuesday, May 22, 2018
Business

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

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.

Comments
Proud mom orders ‘Summa Cum Laude’ cake online. Publix censors it to ‘Summa . Laude.’

Proud mom orders ‘Summa Cum Laude’ cake online. Publix censors it to ‘Summa . Laude.’

Saturday was Jacob Kosinski’s big day. His whole family, many from out of town, saw the Charleston, South Carolina, student graduate from his Christian-based homeschool program with a 4.89 grade point average and the coveted honor of summa cum laude....
Updated: 2 hours ago
Company with Tampa ownership to get new product — candy-like coffee thins — into Dunkin’ Donuts

Company with Tampa ownership to get new product — candy-like coffee thins — into Dunkin’ Donuts

TAMPA — Tampa-based private equity firm ProspEquity Partners paid $18.2 million less than three weeks ago for a two-thirds stake in Tierra Nueva, a Miami company with a new idea for coffee, and already it has some big news.Tierra Nueva’s "coffee thin...
Published: 05/22/18
It’s picking time at Brooksville blackberry farm, one of a handful in the region

It’s picking time at Brooksville blackberry farm, one of a handful in the region

BROOKSVILLE — Black follows blue in the berry patches of Hernando County, but blackberry proponents claim they’re worth waiting for.Today’s blackberry brambles are thornless and don’t require bending over to pick. Their fruits are mouth-full juicier,...
Published: 05/22/18
Brink: Which Florida companies have the biggest gaps between CEO and worker pay?

Brink: Which Florida companies have the biggest gaps between CEO and worker pay?

The typical Publix employee earns $40,135. At Duke Energy, it’s $122,365. Home Depot: $21,095.Last year, that financial information would have been hard to find. Now, it’s easy, thanks to a new requirement that publicly traded companies disclose the ...
Updated: 6 minutes ago
One of Ybor City’s most historic blocks about to see construction of four-story boutique hotel

One of Ybor City’s most historic blocks about to see construction of four-story boutique hotel

TAMPA — Developers are poised to launch construction this week on one of Ybor City’s biggest new projects in years — a four-story, $50 million boutique hotel being created by a Chicago company that seeks out neighborhoods rich in color and character....
Updated: 3 hours ago
Shoppers begin Publix boycott as chain continues supporting Adam Putnam for governor

Shoppers begin Publix boycott as chain continues supporting Adam Putnam for governor

Publix has been Florida’s favorite grocery chain for decades — but some shoppers are turning their backs on the store after learning it donated more than half a million dollars to gubernatorial candidate Adam Putnam. A handful of state advocacy group...
Updated: 3 hours ago
FPL parent wants to expand its Florida footprint with new purchase

FPL parent wants to expand its Florida footprint with new purchase

TALLAHASSEE — The parent company of Florida utility giant Florida Power & Light announced Monday that it will buy the largest electricity producer in Northwest Florida, Gulf Power, in a $6.4 billion deal.Juno Beach-based NextEra Energy Inc. said in a...
Updated: 5 hours ago
GasBuddy predicts plunge in summer travel, blames gas prices

GasBuddy predicts plunge in summer travel, blames gas prices

At least one gas price tracker expects rising fuel prices to sharply curtail summer travel. "For all those that have said summer travel will be unaffected by high gas prices, we offer thousands of respondents who have strongly indicated that’s not tr...
Published: 05/21/18
Barack and Michelle Obama are becoming television and film producers for Netflix

Barack and Michelle Obama are becoming television and film producers for Netflix

Netflix announced a production deal Monday with Barack and Michelle Obama that will see the former first couple create a wide range of content for the streaming service.The deal, talks for which had first been reported in March, will encompass a wide...
Published: 05/21/18
Starbucks: You don’t have to buy coffee to sit in our cafes or use our restrooms

Starbucks: You don’t have to buy coffee to sit in our cafes or use our restrooms

Starbucks is now allowing people to use its restrooms and sit in its cafes and patios even if they do not buy anything.The coffee giant on Saturday announced its new policy, which says that customers, including those who did not make a purchase, can ...
Published: 05/21/18