Jos. A Bank, which was the recipient of a rejected $1.61 billion acquisition offer from Men's Wearhouse, said it determined that the buying of Eddie Bauer made more sense for its shareholders. Jos. A. Bank will pay $564 million in cash and issue about 4.7 million shares at $56, which is a premium to Jos. A. Bank's Thursday closing price of $54.92.
"The addition of Eddie Bauer provides us with clear avenues for strong growth and expansion for both of our businesses now and in the years ahead, in terms of product offering, store count, global distribution and direct sales," said Neal Black, CEO of Jos. A. Bank.
Jos. A. Bank has been in talks with Golden Gate Capital, the parent company of Eddie Bauer, for the last two years to acquire the brand, but until recently they were reluctant to sell the clothing retailer.
Jos. A. Bank bid $2.3 billion for Men's Wearhouse last year, which was rejected, and then Jos. A Bank rejected the latter's $1.61 billion offer. Jos. A Bank did say that it had the option to drop the Eddie Bauer deal if better offer came along.