Men’s Wearhouse and Jos. A. Bank find a deal that suits them
While neither Men’s Wearhouse nor Jos. A. Bank evoke memories of The Grateful Dead, the lyric, "What a long, strange trip it’s been," seems appropriate to describe the back and forth that has been going on between the companies since last fall when Jos. A. Bank made an unsolicited bid for Men’s Wearhouse. The offer was rejected, as were subsequent bids by Men’s Wearhouse to acquire Jos. A. Bank. But all of that complication culminated in news yesterday that Men’s Wearhouse will acquire its smaller rival in a deal valued at $1.8 billion.
"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," said Doug Ewert, president and chief executive officer of Men’s Wearhouse.
The companies expect a smooth transition since Jos. A. Bank will retain its name and no store remodels are planned. The retailer said management will consist of "the most qualified individuals from both organizations."
The combined company will have more than 1,700 stores in the U.S with annual sales of $3.5 billion.
One casualty of the merger is Jos. A. Bank’s deal to acquire Eddie Bauer. The two companies had agreed on an acquisition valued at $825 million. Jos. A. Bank will pay $48 million to Eddie Bauer’s parent company to terminate the agreement.
- Men’s Wearhouse To Acquire Jos. A. Bank For $65.00 Per Share In Cash – Jos. A. Bank Clothiers/Men’s Wearhouse
- Men’s Wearhouse, Jos. A. Bank sew up $1.8B deal – USA Today
- Men’s Wearhouse stitches up deal to buy Jos. A. Bank – Reuters
- Men’s Wearhouse will acquire Jos. A. Bank, ending battle of the suits – San Francisco Chronicle
What do you think about the way the extended negotiation between Men’s Wearhouse and Jos. A. Bank was handled? How will the merger of Men’s Wearhouse and Jos. A. Bank affect the menswear market in the U.S. Will the two chains be able to coexist under one management roof?