NEW YORK (TheStreet) -- Men's clothing retailer Jos A. Bank Clothiers (JOSB) has confirmed its $2.3 billion, all-cash bid for Men's Wearhouse (MW). The offer equates to $48 a share, a 36% premium on Men's Wearhouse's share price at Tuesday's close of $35.24.
The combined company will operate more than 1,700 stores nationwide, making it the leading men's apparel manufacturer and retailer in the U.S. Men's Wearhouse is currently evaluating the proposal.
"Our all-cash proposal would deliver a substantial premium to Men's Warehouse shareholders," said Jos A. Bank Chairman Robert Wildrick in a statement. "In addition to capturing significant synergies, we believe that a combination would bring together our complementary capabilities to better serve our customers."
Men's Wearhouse reported second-quarter net sales for the period ended August 3 fell 2.3% to $647.3 million, compared with $662.3 million for the same quarter a year earlier. Net earnings for the period fell to $42.9 million, or 85 cents a share, from $59.4 million in the year-ago quarter.
Jos A. Bank's bid comes on the heels of a turbulent year for Men's Wearhouse. In June, the company parted with its founder and chairman George Zimmer, the man who acted as spokesperson for the brand for more than 25 years.
In pre-market trading Wednesday, Men's Wearhouse shares are 30% higher, while Jos A. Bank has increased 9.46%.
TheStreet Ratings team rates Jos A. Bank Clothiers Inc as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation: