NEW YORK (TheStreet) -- Jos. A. Bank Clothiers (JOSB) hit an all-time high of $64.63 as of 2:47 p.m. on Tuesday after the announcement that rival Men's Wearhouse (MW) had reached an agreement to purchase Jos. A. Bank for approximately $1.8 billion.
The two sides had been bidding to acquire each other since October, when Jos. A. Bank made an offer of approximately $2.3 billion to buy Men's Wearhouse. The final offer price announced is $65 a share. Men's Wearhouse, which had previously offered $63.50 a share, said the deal would create the fourth-largest U.S. men's apparel retailer with annual sales of approximately $3.5 billion. The deal would keep the Jos. A. Bank name in place.
Jos. A. Bank must terminate its deal to buy Eddie Bauer as part of the deal with Men's Wearhouse.
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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:
"We rate JOS A BANK CLOTHIERS INC (JOSB) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."