$1.8 billion Houston Takeover
A $1.8 billion Houston takeover: Men's Wearhouse gobbles up a competitor, area store closings to follow
The announcement ended a five-month saga that started when Jos. A. Bank offered to buy Men's Wearhouse, whose corporate offices are in Houston and Fremont, Calif., soon after Men's Wearhouse founder George Zimmer was pushed out of the company.
The announcement ended a five-month saga that started when Jos. A. Bank offered to buy Men's Wearhouse soon after founder George Zimmer was pushed out.
The bidding went back and forth between the two rivals and at one point Jos. A. Bank said it planned to acquire clothing brand Eddie Bauer in a bid to stay independent.
Men's Wearhouse brought the clothing war to a conclusion with an offer price of $65 per share, considerably more than the Jos. A. Bank stock price when the battle began last October.
The combined operation will create the fourth-largest men's apparel retailer in the United States with annual sales of about $3.5 billion at more than 1,700 stores. The Associated Press reports that Jos. A. Bank will keep its name and possibly its "buy one suit and get three free" deals.
To reduce costs, Men's Wearhouse is expected to close duplicate stores in the same mall or in free-standing locations close to each other. In Houston, Men's Wearhouse and Jos A. Banks overlap in such locations as the River Oaks Shopping Center, Meyerland, the Galleria area and Sugar Land. The company has not announced any closings or consolidations.