The back and forth dilemma between Men's Wearhouse and Jos. A. Bank ended Tuesday with the former unveiling details of its $1.8 billion deal to purchase the latter at $65 a share.
The figure is 56 percent more than Jos. A. Bank's number when it completed the deal Oct. 8 prior to its proposal to purchase Men's Wearhouse The Los Angeles Times reported.
The new company expects to bring in $3.5 billion in sales annually, have 1,700 locations in the United States, and have 23,000 employees.
"We are pleased to have reached this agreement with Jos. A. Bank, which we believe will deliver substantial benefits to our respective shareholders, employees and customers," Doug Ewert, Men's Wearhouse told The Times. "Together, Men's Wearhouse and Jos. A. Bank will have increased scale and breadth."
The new entity will run under two individual names, and not include Eddie Bauer, which Jos. Bank originally wanted to obtain, but had to forgo to follow the transaction's terms.
The acquisition still needs to complete the regulation process associated with the deal, which is expected as the third fiscal quarter concludes pending the outcome.
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 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.
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.
