Given Men’s Wearhouse’s advantage in scale, growth and performance, this combination is best facilitated through an acquisition of Jos. A. Bank, Men’s Wearhouse stated in a press release.
The Men’s Wearhouse proposal does not require any costly third-party equity investment and is not conditioned on financing. Men’s Wearhouse expects to finance the transaction with a combination of balance sheet cash and debt financing, according to the release.
Men’s Wearhouse said would expect a smooth integration, as there will be no rebranding or remodels required – Jos. A. Bank’s store banner would remain in place. Management would consist of the most qualified individuals from both companies, and Men’s Wearhouse said that implementing the best practices of both companies will drive operational and financial success.
The Men’s Wearhouse’s Board of Directors voted Oct. 9 to reject an unsolicited, non-binding proposal from Jos. A. Bank to acquire Men’s Wearhouse for $48 per share in cash.
A merger of Men’s Wearhouse and Jos. A. Bank would create the largest men’s apparel, manufacturer and retailer in the U.S.