Men's Wearhouse would finance proposed acquisition with debt financing

By Angela McDaniels

Tacoma, Wash., Nov. 26 - Men's Wearhouse Inc. has offered to acquire Jos. A. Bank Clothiers, Inc. and plans to finance the transaction with a combination of balance sheet cash and debt financing, according to a company news release.

The proposed price is $55 per share of common stock in cash, representing an implied enterprise value of about $1.2 billion.

In October, Men's Wearhouse rejected Jos. A Bank's unsolicited offer to purchase it for $48 a share.

In Tuesday's news release, Men's Wearhouse said its board concluded that an acquisition of Jos. A. Bank has "strategic logic" and the potential to deliver "substantial benefits."

Men's Wearhouse said a combination of the companies with it as the acquiror would result in substantially lower leverage. It estimates the ratio of pro forma debt to last-12-months adjusted EBITDA at about 2.8 times.

BofA Merrill Lynch and J.P. Morgan Securities LLC are acting as Men's Wearhouse's financial advisers.

Men's Wearhouse and Jos. A Bank are specialty retailers of men's apparel based in Fremont, Calif., and Hampstead, Md., respectively.

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