Jos. A. Bank Wants to Buy Men’s Wearhouse for $2.3B

by Christopher Freeburn | October 9, 2013 10:18 am

Jos. A. Bank Wants to Buy Men’s Wearhouse for $2.3B

Mens Wearhouse 300x225 Jos. A. Bank Wants to Buy Mens Wearhouse for $2.3B[1]Shares of The Men’s Wearhouse (MW[2]) soared almost 25% in Wednesday morning trading after a buyout bid from a men’s apparel rival was made public[3].

Jos. A. Bank (JOSB[4]) has offered to pay $48 a share for Men’s Wearhouse, valuing the all cash deal at $2.3 billion. The offer was originally submitted to Men’s Wearhouse management in private back in September. Jos. A. Bank is offering a 42% premium over Men’s Wearhouse’s share price at the time the bid was first made, the Associated Press notes.

On Wednesday, Men’s Wearhouse shot down the buyout bid[5], which it dismissed as “highly opportunistic.” Men’s Wearhouse said the offer undervalued the company and was likely to raise anti-trust concerns from regulators, the New York Times noted.

Men’s Wearhouse experienced a management shuffle over the summer after its George Zimmer, its founder and chairman, was ousted by its board after he disagreed with its board about the company’s business strategy[6].

In August, reports surfaced that Zimmer was looking to buy the company[7], though Men’s Wearhouse was said to be disinclined toward a sale.

The company operates 1,200 stores under its Men’s Wearhouse, K&G and Moore’s brands.

Shares of Jos. A. Bank gained almost 7% in Wednesday morning trading.

Endnotes:
  1. [Image]: http://investorplace.com/wp-content/uploads/2013/06/Mens_Wearhouse.jpg
  2. MW: http://studio-5.financialcontent.com/investplace/quote?Symbol=MW
  3. after a buyout bid from a men’s apparel rival was made public: http://www.usatoday.com/story/money/business/2013/10/09/jos-a-bank-mens-wearhouse/2950629/
  4. JOSB: http://studio-5.financialcontent.com/investplace/quote?Symbol=JOSB
  5. shot down the buyout bid: http://dealbook.nytimes.com/2013/10/09/jos-a-bank-makes-2-3-billion-offer-for-mens-wearhouse/?_r=0
  6. after he disagreed with its board about the company’s business strategy: http://investorplace.com/2013/06/the-iconic-face-of-mens-wearhouse-gets-the-boot/
  7. Zimmer was looking to buy the company: http://investorplace.com/2013/08/ousted-mens-wearhouse-founder-planning-to-take-back-company/

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