Business

In A Reversal, Men’s Wearhouse Launches Takeover Bid For Jos. A. Bank

Men's Wearhouse is turning the tables on its recent pursuer. The Houston-based retailer is offering to buy out rival Joseph A. Bank Clothiers for $1.5 billion.

Men’s Wearhouse is offering $55 per share in cash for Joseph A. Bank. The offer comes less than two weeks after Maryland-based Joseph A. Bank withdrew its $2.3 billion bid for its Houston rival.

Richard Collings is a senior writer for financial news service The Deal.

“Pac-Man defenses are what they are called, and they are pretty rare.”

Men’s Wearhouse Lead Director Bill Sechrest said in a statement that the company’s board reviewed its strategic options after Joseph A. Bank’s buyout bid went public.

The Deal’s Collings notes that Men’s Wearhouse is the larger company but has less available cash on its balance sheet. He says Joseph A. Bank’s management team would be better able to pull off an acquisition, but it would need the help of private equity to finance such a deal. The smaller company enlisted the help of Golden Gate Capital in its earlier bid.

“Regardless of who ends up acquiring who, these two companies make a lot of sense together because of the intense competition in retail apparel and because so many of the department store players have much bigger suit businesses. So combining these two guys and them being able to wring out the cost-saving synergies would be helpful to both.”

Men’s Wearhouse said it wouldn’t rebrand Joseph A. Bank if a deal goes through. Joseph A. Bank’s board said it’s evaluating the proposal.

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Andrew Schneider

Andrew Schneider

Politics and Government Reporter

Andrew heads Houston Public Media’s coverage of national, state, and local elections. He also reports on major policy issues before the Texas delegations in the U.S. House and Senate, as well as the Texas governorship, the state legislature, and county and city governments. Before taking up his current post, Andrew...

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