The Men's Wearhouse proposal represents a 45% premium over Jos. A. Bank's unaffected enterprise value and a 32% premium over Jos. A. Bank's closing share price on October 8, 2013, the day prior to the public announcement of Jos. A. Bank's proposal to acquire Men's Wearhouse.
The transaction represents a 9.1x enterprise value to last twelve months ("LTM") Adjusted EBITDA multiple (assuming $133 million of LTM Adjusted EBITDA as of August 3, 2013), a significant premium to Jos. A. Bank's proposal to acquire Men's Wearhouse. Men's Wearhouse intends to finance the transaction with a combination of balance sheet cash and debt financing.
"Following Jos. A. Bank's unsolicited public proposal to acquire Men's Wearhouse, our Board of Directors evaluated a number of alternatives to deliver value to our shareholders," said Bill Sechrest, Lead Director of the Board of Men's Wearhouse.
"After a thorough review, our Board concluded that an acquisition of Jos. A. Bank by Men's Wearhouse has strategic logic and the potential to deliver substantial benefits to our respective shareholders, employees and customers. In reaching our determination, we considered a number of factors including Men's Wearhouse's advantage in scale, growth and performance, long history as a prudent steward of capital, successful acquisition track record and experienced management team.
“We believe we are the right acquiror for this combination and that our experienced management team is best positioned to execute the integration of our companies and achieve the synergies that would result. We are ready to engage with the Jos. A. Bank's Board immediately."
Doug Ewert, President and Chief Executive Officer of Men's Wearhouse, said, "Our compelling proposal provides Jos. A. Bank's shareholders with a substantial premium and immediate liquidity for their investment.
“The transaction will be substantially accretive to Men's Wearhouse's earnings in year one, and the combined company will have a strong balance sheet with the operational flexibility to successfully execute on its strategic plan. Together, we can create the premier men's apparel retailer, with enhanced scale and a broader best-in-class offering for our valued customers, which we expect to drive significant shareholder value."
Click here to read more
Fashion | On 24th Feb 2017
Google has partnered with British fashion designer Christian Cowan to ...
Textiles | On 24th Feb 2017
The value of textile and garment exports made by Pakistan decreased...
Fashion | On 24th Feb 2017
Suntchi (Shanghai) Brand & Technology Co Ltd, a full-service...
‘France had a reputation of being big in new ideas, but poor in marketing...
Sunil Kumar Sharma
Loknayak JPNSSSG Ltd
'The blend of cotton–linen yarn has high demand in the domestic and...
‘RT3 motto is: Do not check millimetres, check colours.’
Steve Cole of Xerium Technologies discusses the industry. Xerium is the...
The Indian market has huge potential in technical textiles, and by far,...
Technical Absorbents Ltd
Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...
Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...
Silvia Venturini Fendi
"Yes, my confidence and positive attitude are my strengths and should be...
Gildan Activewear SRL
Gildan Activewear, a manufacturer and marketer of branded clothing and...
Apparel/Garments | On 23rd Feb 2017