Men's Wearhouse to obtain Jos. A. Bank for 1.8 billion dollars
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Both boards of directors from the two companies have "unanimously approved the transaction", according to a press statement released by Men's Wearhouse. Combined, the two will have over 1,700 stores in the US, with nearly 23,000 employee it will be the fourth biggest men's apparel retailer in the US and annual sales are predicted to reach 3.5 billion dollars.
"We
MW and Jos. A. Bank to form together a "truly great company"
"The combined company will have the operational flexibility to successfully execute on strategic plans at both brands. We are excited by the opportunities this transaction presents and are confident that our combined best-in-class offerings for our valued customers will drive significant shareholder value. I am confident that, together, we will create a truly great company for all of our stakeholders," added Ewert.
The two companies expect "a smooth integration, as there will be no rebranding or remodels required," explained Men's Wearhouse, as according to the terms of transaction Jos A. Bank's store banner is to stay in place. The men's wear retailer also plans on creating a management team which "will consist of the most qualified individuals from both organizations".
As part of the agreement, Men's Wearhouse extended the expiration of its cash tender offer to March 19 and is set to amend its pending tender offer to include the increase in the purchase price of 65 dollars per share and other changes agreed via the merger agreement between Men's Wearhouse and Jos. A. Bank, which include the latter company terminating its agreement to acquire Everest Holdings LLC, the parent company of Eddie Bauer.
Robert N. Wildrick, chairman of the board of Jos. A. Bank, commented: "The transaction we are announcing today clearly reflects the success of our efforts, providing a substantial premium over any price at which our stock has ever traded, including a 56 percent premium since our interest in Men's Wearhouse became public last October, and allowing our shareholders to receive immediate consideration for their holdings... We look forward to working together with Men's Wearhouse to ensure a smooth transition."
The agreement is thought to be finalized sometime during the third quarter of the year and ends a six month bidding war between the two men's wear retailers, which first began last October when Jos. A. Bank made an offer to acquire Men's Wearhouse.