For months, Men's Wearhouse was a persistent suitor, and Tuesday it got what it wanted: Jos. A. Bank.
The rival menswear retailers announced Tuesday that Men's Wearhouse Inc. would buy its rival for $65 a share, or $1.8 billion, creating a company with expected yearly sales of $3.5 billion, 1,700 U.S. stores and 23,000 employees. The combined company would operate the two chains as separate brands.
The agreement ends a saga that included offers, counteroffers and a lawsuit.
After the announcement, Men's Wearhouse shares jumped $3.48, or 6.4%, to $58.05.
"We are pleased to have reached this agreement with Jos. A. Bank, which we believe will deliver substantial benefits to our respective shareholders, employees and customers," said Doug Ewert, Men's Wearhouse chief executive. "Together, Men's Wearhouse and Jos. A. Bank will have increased scale and breadth."
As part of the deal, Jos. A. Bank Clothiers Inc. agreed to drop plans to acquire outerwear retailer Eddie Bauer. That was a condition of Men's Wearhouse's offer.
The per-share purchase price is 56% above Jos. A. Bank's closing price on Oct. 8, the day before the company made an offer to buy Men's Wearhouse.
The deal is expected to close by the third quarter of this year if it passes regulatory muster.
[For the record, 3:08 p.m. PDT March 11: An earlier version of this post incorrectly said the merger was announced Wednesday. It was announced Tuesday.]