Men’s Wearhouse and Jos. A. Bank are expected to announce a deal as early as Tuesday that would end months of hostilities between the two retailers, according to people briefed on the matter.
The companies and their advisers worked through the weekend and are closing in on a deal in which Men’s Wearhouse would acquire Jos. A. Bank for about $65 per share or slightly higher, these people said. That price would give Jos. A. Bank a market value of about $1.8 billion, and mark the successful completion of Men’s Wearhouse’s so-called Pac Man defense.
Jos. A. Bank in October attempted to acquire Men’s Wearhouse for $48 per share, or $2.3 billion, in a surprise takeover bid just months after George Zimmer, the Men’s Wearhouse founder, was forced out as chairman of the company.
Men’s Wearhouse swiftly rejected the offer, and was soon exploring buying the shoemaker Allen Edmonds in a deal some viewed as a defensive move.
By late October, pressure for Men’s Wearhouse to engage in deal talks was ratcheting up, with Jos. A. Bank offering to raise its bid if it gained access to Men’s Wearhouse’s books, and the hedge fund Eminence Capital called for Men’s Wearhouse to engage in talks.
But by mid-November Jos. A. Bank dropped its bid, and just weeks later, Men’s Wearhouse struck back, offering $1.5 billion for its onetime suitor and paving the way for the deal expected to be announced Tuesday.