Men's Wearhouse and Jos. A. Bank: Who Won?

Updated
Men's Wearhouse and Jos. A. Bank: Who Won?

In a deal worth $1.8 billion, Men's Wearhouse is finally buying Jos. A. Bank . The market loved the deal, with both stocks up on the news, but in this segment from Tuesday's Investor Beat, host Chris Hill and Motley Fool analysts Morgan Housel and Mike Olsen discuss who the real winners were. Mike points squarely at Jos. A. Bank shareholders, as Men's Wearhouse will be paying an outstanding 10 times EV/EBITDA for the company.

In the video, the guys discuss why the elimination of an element of irrational competition is one factor making the deal worth the price, as well as why men's apparel may be an easier market than other apparel markets, and what the experience of shopping at the new combined company may look like from here.

Now, here are two retailers dominating where others falter.
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The article Men's Wearhouse and Jos. A. Bank: Who Won? originally appeared on Fool.com.

Chris Hill, Michael Olsen, CFA, Morgan Housel, and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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