NEW YORK - It's time to suit up: Men's Wearhouse (MW) is buying Jos. A. Bank for $1.8 billion.
Men's Wearhouse Inc. will pay $65 per share, a 5 percent premium to Jos. A. Bank Clothiers Inc.'s closing price Monday of $61.83.
The agreement ends a months-long back and forth that began in October when Jos. A. Bank offered to buy its larger rival for $2.3 billion. Men's Wearhouse scoffed at that offer, and turned the tables, offering to buy its rival for $1.54 billion.
By early March, Men's Wearhouse had an offer of $63.50 per share on the table but said it may raise the bid to $65 per share if some conditions were met.
The combined company will be the fourth-biggest U.S. men's clothing retailer, with more than 1,700 U.S. stores and about $3.5 billion in sales.
"Together, Men's Wearhouse and Jos. A. Bank will have increased scale and breadth, and Jos. A. Bank's strong brand and complementary business model will broaden our customer reach," said Men's Wearhouse CEO Doug Ewert in a statement.
The transaction is expected to close by the third quarter.