Jos. A. Bank plans $2.3B deal for Men's Wearhouse

OAKLAND, CA - NOVEMBER 02: A sign hangs in the window of a Men's Wearhouse store in solidarity with Occupy Oakland's general strike on November 2, 2011 in Oakland, California. Thousands of protestors have taken to the streets for a general strike organized by Occupy Oakland. (Photo by Justin Sullivan/Getty Images)
Justin Sullivan

HAMPSTEAD, MD. Jos. A. Bank Clothiers (JOSB) says it has proposed to buy fellow retailer Men's Wearhouse (MW) for about $2.3 billion in cash in a deal that it expects will immediately help its earnings.

The Hampstead, Md., company says it has offered to pay $48 for each share of Men's Wearhouse.

That represents a 42 percent premium to the stock's closing price on Sept. 17, the day before Jos. A. Bank. pitched the deal to Men's Wearhouse executives.

The Men's Wearhouse Inc. shares climbed more than 33 percent to $47 in premarket trading Wednesday. Jos. A. Bank shares also are up almost 10 percent to $45.75.

Jos. A. Bank Clothiers Inc. says the deal will significantly help earnings. The company said last month its fiscal second-quarter net income fell 39 percent.