jrd617
Stylish Dinosaur
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The consolidation of the North American low end mens suit market could be upon us! JoS. A Bank offers a cool $2.3 billion for MW
http://stream.wsj.com/story/latest-headlines/SS-2-63399/SS-2-349798/
Jos. A. Bank Makes $2.3 Billion Bid for Men’s Wearhouse
Deal Would Create Nationwide Powerhouse in Men's Apparel
Jos. A. Bank sait it made a nonbinding proposal to buy Men's Wearhouse for about $2.3 billion, a deal that could create a nationwide giant in men's apparel.
Jos. A. Bank Clothiers Inc. sait it made a nonbinding proposal to buy Men’s Wearhouse Inc. for about $2.3 billion, a deal that could create a nationwide giant in men’s apparel.
The Wall Street Journal on Tuesday reported that Jos. A. Bank approached Men’s Wearhouse about a combination of the two companies, citing people familiar with the matter.
Jos. A. Bank said it proposed $48 a share in cash for all outstanding shares of Men’s Wearhouse, a 36% premium over their closing price Tuesday. The stock was trading above $40 a share in August but sank sharply in recent weeks after posting lackluster quarterly results.
Jos. A. Bank Chairman Robert Wildrick first made the offer to Men’s Wearhouse CEO Douglas Ewert by phone Sept. 17, then sent a follow-up letter. Men’s Wearhouse has said it’s reviewing the proposal.
The transaction is expected to be funded by a combination of cash on Jos. A. Bank’s balance sheet, new equity capital and debt financing—with the new equity provided by Golden Gate Capital, a private-equity firm.
Combining Jos. A. Bank and Men’s Wearhouse could help the companies cut costs and bolster themselves in a tough sales environment. Jos. A. Bank is a more-than-century-old company with more than 600 stores selling men’s tailored and casual clothing, according to its website. Men’s Wearhouse, meanwhile, has 1,137 stores, according to its website. Its Men’s Wearhouse, Moore, and K&G stores sell suits and sport coats; the company is also in the lucrative tuxedo-rental business.
Men’s Wearhouse recently experienced turmoil in its boardroom. In June, the company’s chairman, George Zimmer, was ousted in a public spat between him and others at the company he co-founded 40 years ago, a dispute that centered on his desire to take over the company. Mr. Zimmer said at the time that he had disagreed with the company’s direction and “the board has inappropriately chosen to silence my concerns.”
With a $1.17 billion capitalization, Jos. A. Bank is smaller than Men’s Wearhouse, which sports a market value of $1.68 billion.
http://stream.wsj.com/story/latest-headlines/SS-2-63399/SS-2-349798/
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