FTC likes look of menswear merger
The Men’s Wearhouse expects to close on its acquisition for Jos. A. Bank in the next 30 days after the Federal Trade Commission determined the deal doesn’t violate antitrust laws.
Men's Wearhouse agreed to pay $65 a share for Jos. A. Bank earlier this year in a deal valued at $1.8 billion that will create a company with more than 1,700 stores and pro forma annual sales of $3.5 billion.
"Together, Men's Wearhouse and Jos. A. Bank will have increased scale and breadth, and Jos. A. Bank's strong brand and complementary business model will broaden our customer reach,” said Men’s Wearhouse president and CEO Doug Ewert. “Men's Wearhouse shareholders will benefit from approximately $100 to $150 million of run-rate annual synergies realized over three years, through improving purchasing efficiencies, optimizing customer service and marketing practices, and streamlining duplicative corporate functions.”
Plans also call for Men's Wearhouse to leverage its vertical direct sourcing model to improve combined merchandising and sourcing across the combined company and rationalize inventory over time.