Men's Wearhouse is willing to purchase rival clothing store Jos. A. Bank for $1.6 billion The Los Angeles Times reported Monday.
The offer comes at $57.50 per share, slightly higher than its $1.5 billion offer to Jos. A. Bank last month The Times reported.
"Although we have made clear our strong preference to work collaboratively with Jos. A. Bank to realize the benefits of this transaction, we are committed to this combination and, accordingly, we are taking our offer directly to shareholders," Doug Ewert CEO of Men's Wearhouse said in a statement The Times reported.
Jos. A. Bank rebuffed Men's Wearhouse $1.5 billion offer Dec. 23 The Wall Street Journal reported. The retailer initially turning down a $2.4 billion bid from Jos. A. Bank, and subsequently offered the new deal Nov.26.
"Our board undertook a thorough review and determined that the per share consideration in the proposal made to us by Men's Wearhouse was simply not in the best interest of our shareholders," Robert Wildrick, chairman of Jos. A. Bank told The Journal at the time. "At the same time, we continue to review acquisition opportunities that would represent a strong strategic fit with our company."
Men's Wearhouse also turned down Jos. A. Bank's $2.3 billion deal in October according to The New York Times.
Men's Wearhouse said it had twice as many stores as Jos. A Bank, and experienced 13 consecutive quarters of growth in same store sales through its main locations, while Jos A. Bank's revenue decreased three consecutive quarters.
Jos A. Bank introduced the idea to merge with its competitor three months after Men's Wearhouse let its founder and chairman George Zimmer go following a power struggle. over privatizing the company.
Jos. A. Bank shares increased over 4 percent at $2.39 a share to $56.80 Monday The Times reported.
Men's Wearhouse's shares saw a 3 percent rise at $1.49 a share to $52.08 The Times reported.
