Men's Wearhouse closed its $1.8 billion deal to acquire Hampstead-based Jos. A. Bank Clothiers Inc., the company said Wednesday, putting an end to what had been a pitched takeover battle between the two former rivals.
The Houston-based men's clothing retailer paid $65 for each share of Bank, which will soon disappear from the NASDAQ's listings. Bank stores will retain their brand name. The combined $3.5 billion company will have 1,700 stores and 26,000 employees.
The deal likely will mean job losses in Maryland, where Bank was founded in 1905. Bank is Carroll County's fourth-largest employer, with about 780 workers at its headquarters and distribution facilities.
Men's Wearhouse CEO Doug Ewert said the company expects $100 million to $150 million of "synergies" by the end of its 2016 fiscal year.
The closing comes nine months after Bank made a surprise $2.3 billion offer to buy Men's Wearhouse. Rejecting that bid, Men's Wearhouse turned the tables in November and made a series of its own advances toward Bank, eventually launching a hostile bid in January.
Bank executives relented in March, agreeing to a merger, after Men's Wearhouse increased its bid by $10 a share above what it initially offered.
A tender offer to Bank stockholders expired at midnight Tuesday, and 94 percent of shares were tendered, the companies said.
Earlier this month, Bank posted a $37.1 million, $1.33 per-share loss for the first quarter of the year in its last earnings report as an independent company.
Ewert said in a statement that he expects the companies to be stronger together, with a broadened reach and increased scale. The companies are seeking to compete with the likes of Macy's, Kohl's, Nordstrom and Brooks Brothers, and the Federal Trade Commission ruled in May that their union would not violate antitrust laws.
"Looking forward, our strong balance sheet provides operational flexibility to successfully execute strategic plans at both brands," Ewert said.
twitter.com/ssdanceCopyright © 2015, The Baltimore Sun