Men’s Wearhouse Inc., which less than two weeks ago let a takeover bid from Jos. A. Bank Clothiers Inc. expire without entering discussions, today offered to buy Jos, A. Bank for about $1.54 billion.
The proposal of $55 a share is 8.7 percent higher than Jos. A. Bank’s closing price yesterday and 32 percent higher than on Oct. 8, the day before it bid for Men’s Wearhouse. Jos. A. Bank rose above the offer price in New York trading.
Men’s Wearhouse, taking the advice of its largest shareholder, Eminence Capital LLC, is turning the tables on Jos. A. Bank to expand its base of men’s clothing stores. The deal, which would create a company with about 1,700 stores, would add to earnings in the first year after closing, helped by as much as $150 million in annual savings in purchasing, customer service and marketing over three years, Men’s Wearhouse said today in a statement.
The takeover would be funded with cash on hand and debt financing, Houston-based Men’s Wearhouse said.
Financo LLC Chairman Gilbert Harrison, whose firm is advising Jos. A. Bank, said in a phone interview that the company has received the proposal and “will respond in due course.”
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