Dive Brief:
- After an ongoing drama of rejected deals and counterbids, Men's Wearhouse Inc. announced Tuesday that it will acquire Jos. A. Bank Clothiers Inc. for $1.8 billion.
- The two rival men's clothing retailers have been in talks for nearly six months, since Jos. A. Bank offered to buy out Men's Wearhouse for $2.3 billion.
- This deal will create the fourth-largest men's retailer in the U.S., with estimated annual sales of approximately $3.5 billion.
Dive Insight:
This merger was bound to happen eventually, as Retail Dive hinted in this most recent profile of retail rivals. On preliminary readings, the deal seems to cater to both companies' interests: Jos. A. Bank will retain its name, and and Men's Wearhouse will get to drop its lawsuit against its former rival's proposed Eddie Bauer acquisition, as Jos. A. Bank has terminated its agreement drafted in February. Men's Wearhouse share owners are celebrating a win as well, with a 6.3% stock gain after news of the definitive agreement broke.
