Eminence Capital believes that Jos. A. Bank Clothiers should offer a “significant premium” for Men’s Wearhouse.

That’s the purpose of its investor presentation, which details the synergies to be gained from a merger. Eminence has also hired Moelis & Co as its financial advisor. Eminence is the single largest MW shareholder, and holds 1.4 million shares of Jos. A. Bank.

Eminence said it likes MW as an investment, and didn’t initially invest to agitate for change. It said MW is attractive due to scale, attractive niche, earnings upside following the decision to sell noncore businesses and focus on the higher margin suit and tuxedo businesses. It called the proposed merger with Jos. A. Bank a “compelling opportunity.”

Eminence added that the value created from the combined retailers is “massive with the potential for $2 billion of value to be created.”

Eminence is pushing for the MW board to engage in discussions with the Jos. A. Bank board, and noted that while the initial offer of $48 a share was low, Jos. A. Bank should be prepared to offer a “significant premium” for MW, but that first Jos. A. Bank must be engaged in dialogue so that it is positioned to pay more.

MW has been steadfast in refusing to hold talks with Jos. A. Bank. Eminence is seeking a “white agent” designation to hold a special meeting of MW shareholders to amend the MW bylaws. The hedge fund is not currently seeking for any change in the composition of MW’s board.

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