Men's Wearhouse announced on Tuesday that the company has reached a deal with Jos. A. Bank for $1.8 billion.
The clothing retailer will acquire 629 stores and pay out $65 a share, and despite the purchase both names will still be used, reports CNN. Neither company has indicated whether any stores for either independent retailer will be shuttered.
The deal isn't surprising as Men's Wearhouse was offering about $63.50 a share, which Jos. A. Bank initially rejected before the former upped the offer to $65 a share in cash.
According to The New York Times, Jos. A. Bank offered a $2.3 billion bid late last year, which was rejected.
Men's Wearhouse CEO Douglas S. Ewert said in a statement, "All of us at Men's Wearhouse have great respect for Jos. A. Bank management team and are eager to work with Jos. A. Bank's talented employees."
The combination of the two clothing retailers will make the resulting company the fourth largest men's apparel store in the U.S. The combined annual revenue for Men's Wearhouse and Jos. A. Bank will likely be nearly $3.5 billion.
image courtesy of Wikimedia Commons
