×
92 878
Fashion Jobs
PACSUN
Human Resources Project Coordinator
Permanent · Anaheim
NORDSTROM
Asset Protection - Agent - Houston Galleria
Permanent · Houston
NORDSTROM
Manager - Asset Protection - Los Cerritos
Permanent · Cerritos
NORDSTROM
Asset Protection - Agent - Phipps Plaza
Permanent · Atlanta
NORDSTROM
Asset Protection - Agent - Houston Galleria
Permanent · Houston
NORDSTROM
Retail Stock & Fulfillment - Fashion Mall at Keystone
Permanent · Indianapolis
NORDSTROM
General Manager- Bazille- Stanford Shopping Center
Permanent · Palo Alto
NORDSTROM
Asset Protection - Agent - Tustin Marketplace Rack
Permanent · Tustin
NORDSTROM
Asset Protection - Agent - Howe Bout Arden Rack
Permanent · Sacramento
NORDSTROM
Asset Protection Agent - Mercado Rack, Naples, fl
Permanent · Naples
NORDSTROM
Asset Protection - Agent - Alamo Quarry Rack
Permanent · San Antonio
NORDSTROM
Retail Stock - Marketplace at Braintree Rack
Permanent · Braintree
NORDSTROM
Asset Protection - Agent - East Palo Alto Rack
Permanent · East Palo Alto
NORDSTROM
Inventory Integrity & Quality Manager - Riverside, ca
Permanent · Riverside
NORDSTROM
Asset Protection - Security Ambassador - Roosevelt Field
Permanent · Garden City
NORDSTROM
Asset Protection -Agent - East Palo Alto Rack
Permanent · East Palo Alto
NORDSTROM
Asset Protection - Security Ambassador - Newbury Rack
Permanent · Boston
NORDSTROM
Asset Protection Agent - Aventura
Permanent · Aventura
NORDSTROM
Asset Protection- Agent-The Sono Collection
Permanent · Norwalk
NORDSTROM
Asset Protection - Agent - Laguna Niguel Rack
Permanent · Laguna Niguel
NORDSTROM
Retail Stock & Fulfillment - Los Cerritos Center
Permanent · Cerritos
NORDSTROM
Retail Stock & Fulfillment - International Plaza
Permanent · Tampa
By
Reuters
Published
Mar 12, 2014
Reading time
2 minutes
Share
Download
Download the article
Print
Click here to print
Text size
aA+ aA-

Men's Wearhouse stitches up deal to buy Jos. A. Bank

By
Reuters
Published
Mar 12, 2014

Men's Wearhouse Inc said it would acquire rival Jos. A. Bank Clothiers Inc for about $1.8 billion, ending a five-month saga that started with Jos. A. Bank offering to buy its larger menswear rival.

The companies, operating in a mature market, have bid and counterbid for each other since October when Jos. A. Bank offered to buy Men's Wearhouse for about $2.3 billion.

The increased offer price of $65 per share announced on Tuesday is a premium of 5.1 percent to Jos. A. Bank's Monday closing price. But it is 56 percent more than the stock's price in October before the merger battle began.

Men's Wearhouse, which had previously offered $63.50 per share, said the deal would create the fourth-largest men's apparel retailer in the United States with annual sales of about $3.5 billion.

Men's Wearhouse shares were up 6 percent in midday trading at $58.53. Jos. A. Bank shares were up 3.75 percent at $64.15.

"It's a second Christmas for Jos. A. Bank shareholders," Jerry Reisman, an M&A expert at law firm Reisman Peirez Reisman and Capobianco LLP, told Reuters.

Men's Wearhouse will be able to close stores duplicated in the same mall, reducing costs in the long term, he said.

Men's Wearhouse did not mention any plans to close stores in its statement.

Jos. A Bank's initial offer for Men's Wearhouse in October came soon after Men's Wearhouse founder George Zimmer was pushed out of the company by the board of directors.

Mens's Wearhouse rebuffed the offer, which spurred Jos. A. Bank to say it could raise its bid if it was allowed access to its larger rival's books for due diligence.

Hedge fund Eminence Capital LLC, a Men's Wearhouse shareholder, then put pressure on the company to engage in merger talks with Jos. A. Bank.

In November, Jos. A. Bank terminated its offer with Men's Wearhouse. In turn, Men's Wearhouse struck back at Jos. A. Bank with a $1.5 billion bid which Jos. A Bank turned down.

Jos. A Bank later said it would acquire clothing brand Eddie Bauer from private equity firm Golden Gate Capital in a bid to stay independent and would start a share buyback worth $300 million after the deal closed.

As part of its deal with Men's Wearhouse, Jos. A. Bank said it would terminate its deal to buy Eddie Bauer.

"A merger with Men's Wearhouse was always the likeliest of outcomes, it's just that Jos A Bank wanted to extract every penny from its suitor.

The combined company will have an interesting first year together, and I expect a few operating stumbles along the way as they integrate antiquated systems," said Brian Sozzi, chief executive of Belus Capital Advisors.

© Thomson Reuters 2022 All rights reserved.