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Men’s Wearhouse Seals Deal to Buy Jos. A. Bank for $1.8 Billion

After a back-and-forth that lasted five months over who would buy whom or whether the merger would happen at all, Men’s Wearhouse announced Tuesday that it settled a deal to acquire Jos. A. Bank for $1.8 billion, or $65 a share.

Men’s Wearhouse president and CEO Doug Ewert said, “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. We expect the transaction will be accretive to Men’s Wearhouse’s earnings in the first full year.”

According to Men’s Wearhouse, the merger will provide compelling value for shareholders from both companies and shareholders will benefit from roughly $100 to $150 million of run-rate annual synergies realized over three years.

Robert N. Wildrick, Chairman of the Board of Jos. A. Bank, said, “Our Board has been rigorously focused on pursuing a path for our shareholders that maximizes value creation. We have been committed to pursuing a range of strategic alternatives to achieve that goal. 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% premium since our interest in Men’s Wearhouse became public last October, and allowing our shareholders to receive immediate consideration for their holdings.”

And joining forces means the new suiter will be the fourth largest U.S. men’s apparel retailer and the combined company will “better serve an expanded customer base in more locations and optimize merchandising and sourcing capabilities,” a company statement noted.

The transition is expected to be smooth as no rebranding or remodels are planned and Jos. A. Bank will retain its store banner. Management will be made up of top individuals from both organizations and the company plans to implement both companies’ best practices to drive operational and financial success. Men’s Wearhouse mergers have proven successful in the past with its previous acquisitions of Joseph Abboud, After Hours and Moores.

As combined forces, Men’s Wearhouse and Jos. A. Bank will operate more than 1,700 U.S. stores with 23,000 employees and $3.5 billion in sales on a pro forma basis.