Jos. A. Bank Clothiers, Inc. (Nasdaq:JOSB) today made the following statement in response to the rejection of its proposal to acquire The Men's Wearhouse, Inc (NYSE:MW).
"We find the response by Men's Wearhouse to our all-cash $48 per share proposal inexplicable.
"Our proposal provides substantial, immediate, and certain value for Men's Wearhouse shareholders. We are proposing a 42% premium to the closing price of Men's Wearhouse's common stock on the day before we made our acquisition proposal. Our price is significantly greater than the highest price at which Men's Wearhouse's stock has traded over the last five years. Yet, the Men's Wearhouse Board asserts that our proposal undervalues their company! Based on today's market reaction and the strong statements of support that have been made since we announced our proposal this morning, we don't believe that the stockholders of Men's Wearhouse share that view at all.
"The formulaic, knee-jerk rejection by Men's Wearhouse, and their refusal to even discuss our proposal, do not serve the interests of their shareholders or their customers. If the Board of Men's Wearhouse has questions about our proposal, we should sit down and discuss them. We are confident we can address all of their questions and are prepared to do so immediately.
"The confidence we have about our proposal is shared by Golden Gate Capital, who is prepared to invest approximately $250 million in the combined company. Golden Gate is a leading investor in the retail space – they share our belief that a combination of Jos. A. Bank and Men's Wearhouse will become the leading men's apparel and sportswear designer, manufacturer and retailer in the U.S.
"We urge Men's Wearhouse shareholders to voice their support for Jos. A. Bank's $48 per share cash proposal with the management and Board of Men's Wearhouse."
