Jos A. Bank planned to fund its non-binding $48 per share offer with $300m in debt, cash and equity provided by private equity firm Golden Gate Capital.
Men’s Wearhouse said the offer, which valued the group at more than eight times its EBITDA, undervalued its “strong prospects for continued growth and value creation.”
Lead director of the company’s board Bill Sechrest said, “After careful review and deliberation, our board of directors has determined that Jos. A. Bank’s proposal significantly undervalues Men’s Wearhouse and fails to reflect the Company’s growth strategy and upside potential.
“We believe Jos. A. Bank’s unsolicited proposal is opportunistic, subject to unacceptable risks and contingencies, and would deprive our shareholders of the value inherent in Men’s Wearhouse for inadequate consideration.”
Earlier this year Men’s Wearhouse acquired the Joseph Abboud clothing brand from private equity firm JW Childs Associates.
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