Less than two months after it rejected a proposal from rival Jos. A. Bank to be taken over, Men's Wearhouse turned the tables Tuesday.
Men's Warehouse is offering to buy Jos. A. Bank Clothiers Inc. for $55 a share, for an estimated value of $1.2 billion.
"We believe we are the right acquiror for this combination and that our experienced management team is best positioned to execute the integration of our companies," said said Bill Sechrest, lead director of the Men's Wearhouse board. "We are ready to engage with the Jos. A. Bank's Board immediately."
In a statement, Jos. A. Bank confirmed the receipt of the unsolicited bid proposal and said its board of directors would review it and "respond in due course."
Shares for both companies jumped Tuesday after news of the takeover proposal. Men's Wearhouse shares were trading at $50.72, up $3.65, or 7.77%. Shares for Jos. A. Bank were up $5.10, or 10.08%, reaching $55.70.
In recent months, the two suit retailers have been looking to acquire new business. In July, Men's Wearhouse paid $97.5 million to buy designer Joseph Abboud's brands.
In October, Jos. A. Bank offered to buy Men's Wearhouse for $2.3 billion, but the offer was rejected because Men's Wearhouse executives believed the bid undervalued the company.
In a statement, Men's Wearhouse said its offer for $55 a share is a 32% premium over Jos. A. Bank's closing price on Oct. 8, the day before it had offered to buy Men's Wearhouse.