Jos. A. Bank Clothiers has rejected The Men’s Wearhouse Inc.’s offer to acquire the company for $55 a share, or about $1.54 billion.
The offer, which came late last month after MW declined a $2.4 billion bid to be taken over by its smaller competitor, was declined based on a unanimous vote of its board, Jos. A. Bank said.
“Our board undertook a thorough review and determined that the per-share consideration in the proposal made to us by Men’s Wearhouse was simply not in the best interest of our shareholders,” said Robert Wildrick, chairman of Hampstead, Md.-based Jos. A. Bank. “At the same time we continue to review acquisition opportunities that would represent a strong strategic fit with our company and provide an opportunity to leverage our core competencies to drive meaningful growth, synergies and substantial value creation over the long term.”
An acquisition of one company by the other would have combined the two largest U.S.-based men’s specialty store operators, with MW’s $2.5 billion in annual sales substantially ahead of Bank’s $1 billion in scale.
Prior to its offer to buy MW, Jos. A. Bank had been reported to be among the companies considering an offer for Lucky Brand, the Fifth & Pacific Cos. Inc. subsidiary which the parent firm two weeks ago agreed to sell to an affiliate of Leonard Green & Partners for $225 million.