Men's Wearhouse Proposes To Buy Jos. A. Bank Clothiers Stock For $55.00/shr

(RTTNews) - The Men's Wearhouse (MW) announced it has proposed to acquire all of the outstanding shares of Jos. A. Bank Clothiers (JOSB) common stock for $55.00 per share in cash, representing an implied enterprise value of approximately $1.2 billion.

Men's Wearhouse intends to finance the transaction with a combination of balance sheet cash and debt financing.

Bill Sechrest, Lead Director of the Board of Men's Wearhouse, said, "Following Jos. A. Bank's unsolicited public proposal to acquire Men's Wearhouse, our Board of Directors evaluated a number of alternatives to deliver value to our shareholders. After a thorough review, our Board concluded that an acquisition of Jos. A. Bank by Men's Wearhouse has strategic logic and the potential to deliver substantial benefits to our respective shareholders, employees and customers. We believe we are the right acquiror for this combination."

Men's Wearhouse said its shareholders would benefit from approximately $100 million to $150 million of run-rate annual synergies realized over three years through improving purchasing efficiencies, optimizing customer service and marketing practices, and streamlining corporate functions. The transaction will be substantially accretive to Men's Wearhouse's earnings in the first year following closing. Men's Wearhouse further said the deal would also enable the company to maintain its quarterly dividend of $0.18 per share.

Men's Wearhouse said its proposal provides Jos. A. Bank's shareholders immediate liquidity and substantial value for their investment.