The Men’s Wearhouse spurned an unsolicited $2.3 billion bid from Jos. A Bank (JAB) Wednesday to combine the two largest U.S. men’s specialty retailers. A merger would benefit JAB beyond cost efficiency. Men’s Wearhouse’s delivers a strong tuxedo rental business and its fashion-forward Joseph Abboud lines through 1,239 Men’s Wearhouse, Moores, and K&G stores.
Houston-based Men’s Wearhouse representatives told reporters the $48-a-share offer “significantly undervalued” the company. The retailer stock rocketed 28% to $45.03 Wednesday, while Jos. A. Bank’s leaped 6% to $44.28.
Jos. A. Bank sells men’s sportswear and footwear, as wells as tailored and casual clothing through its 623 stores in 44 states and the District of Columbia.