Men's Wearhouse to acquire Jos. A. Bank for $1.8 billion

New York -- Ending a five-month saga, Men's Wearhouse said it would acquire Jos. A. Bank Clothiers for about $1.8 billion, or $65 per share in cash. As part of the deal, Jos. A. Bank will terminate its plan to acquire Eddie Bauer from Golden Gate Capital.
The boards of both companies unanimously  approved the transaction.

The offer is above the previous bid of $63.50 a share which Jos A. Bank had rejected in  late February.

The deal will create the fourth largest men's clothing retailer in the United States, with annual revenue of about $3.5 billion.

"We are pleased to have reached this agreement with Jos. A. Bank, which we believe will deliver substantial benefits to our respective shareholders, employees and customers," said Doug Ewert, president and CEO of Men's Wearhouse. "Together, Men's Wearhouse and Jos. A. Bank will have increased scale and breadth, and Jos. A. Bank's strong brand and complementary business model will broaden our customer reach. We expect the transaction will be accretive to Men's Wearhouse's earnings in the first full year."

Ewert added that the combined company will have the operational flexibility to successfully execute on strategic plans at both brands and anticipates that the transaction will help drive significant shareholder value. 

Men's Wearhouse and Jos. A. Bank expect a smooth integration, as there will be no rebranding or remodels required — Jos. A. Bank's store banner will remain in place.

In conjunction with this transaction, Jos. A. Bank has terminated its agreement to acquire Everest Holdings, the parent company of Eddie Bauer. Effective immediately, Jos. A. Bank is also withdrawing its previously announced tender offer to purchase for cash up to $300 million in value of its common stock.

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