Today’s top story in boring, adult, grown-up working news, Men’s Wearhouse, Inc. ($MW) has agreed to buy Jos. A. Bank Clothiers Inc. (JOSB) for $1.8 Billion in Cash, ending a five-month-long struggle between the two retailers for corporate dominance and creating America’s first “Suit-Opoly.” Your dad has probably already texted you.
In my opinion, Men’s Wearhouse should have waited for a “Buy one, get seven free” sale before buying the company, but to each his own.
“Both companies’ boards have approved the transaction, the retailers said today in a statement. Jos. A. Bank also will terminate a separate deal to buy the Eddie Bauer brand and cancel a plan to buy as much as $300 million of its own stock. It’s a strong acquisition that is mutually beneficial to both companies and shareholders of both companies,” Mark Montagna, a Nashville, Tennessee-based analyst for Avondale Partners, said in a phone interview.”
Hopefully this will end the publicity worries of Men’s Wearhouse, who suffered a black eye in the press after firing George Zimmer, the founder, former chairman and long-time deep, gravel-voiced spokesman for the company.
The SEC will most-likely not oppose this merger; a source tells PGP News that after the merger, the two companies, “Are gonna like the way they look. We guarantee it.”**
**By source, I of course mean myself. The SEC said no such thing.