NEW YORK - Looks like the best suitor won.
After an extended chase that included overtures on both sides and flirtations with other parties, Men's Wearhouse and Jos. A. Bank will combine to create the nation's fourth largest men's wear retail chain.
Men's Wearhouse Inc. said Tuesday that it's buying its rival Jos. A. Bank Clothiers Inc. for $1.8 billion. The company will pay $65 a share, a 5 percent premium to Jos. A. Bank's Monday closing price of $61.83. Jos. A. Bank also said it's terminating its deal to acquire the parent company of Eddie Bauer, which sells rugged outerwear.
On Tuesday, shares of both companies rose on the news: Men's Wearhouse's stock was up nearly 5 percent to $57.14, while shares of Jos. A. Bank increased nearly 4 percent to $64.22.