Jos. A. Bank is staging its biggest sale ever — and it’s a 2-for-1 deal.
The men’s suit retailer, which has sparred with Men’s Wearhouse for the past six months in a bitter merger battle, agreed Tuesday to be purchased by its archrival for $1.8 billion.
The deal will create the nation’s fourth-largest men’s apparel retailer, with a combined $3.5 billion in sales and 23,000 employees operating 1,700 stores nationwide.
“All of us at Men’s Wearhouse have great respect for the Jos. A. Bank management team and are eager to work with Jos. A. Bank’s talented employees,” Men’s Wearhouse CEO Doug Ewert said in a statement.
That’s in stark contrast to a torrent of public scorn Men’s Wearhouse has heaped on Jos. A. Bank Chairman Bob Wildrick, accusing him of trying strenuously to block a deal to save his own job.
In months of bickering, Jos. A. Bank countered that Men’s Wearhouse had pooh-poohed the whole idea of a merger last fall, citing antitrust concerns as it deflected Jos. A. Bank’s advances.
The companies said Tuesday they are working with federal regulators, who are reviewing the deal.
The merger, which values Jos. A. Bank at $65 a share, is up from a $55-a-share offer Men’s Wearhouse made in January, countering an offer made last fall by Jos. A. Bank for $2.3 billion, or $48 a share.
Shares of Jos. A. Bank rose 3.9 percent Tuesday to close at $64.22. Men’s Wearhouse shares rose 4.7 percent to close at $57.12.
As part of the deal, Jos. A. Bank said it will scrap an agreement to acquire Eddie Bauer.
While that deal was widely seen as a bargaining tool, its demise is a windfall for Eddie Bauer owner Golden Gate Capital, which will walk away with a $48 million breakup fee.