Could Men's Wearhouse Finally Find the Right Price for Jos. A. Bank?

In the latest chapter of the saga detailing the potential merger between men's apparel retailers Joseph A. Bank and Men's Wearhouse , after rejecting the most recent bid from Men's Wearhouse to buy Jos A. Bank this week, the two sides have agreed to meet and possibly come to terms on a deal that both sides can finally be happy with. Men's Wearhouse is willing to pay a lot for Jos. A. Bank, with the latest offer at $1.8 billion, and there are signs that indicate Men's Wearhouse may be willing to pay even more.

It's obvious why Jos. A. Bank would be an attractive addition to Men's Wearhouse, with Jos. A. Bank's revenue growing 50% over the past 5 years; its growth would make an attractive complement to Men's Wearhouse's stable solid bottom line. But, if the two companies can come to a deal, is Men's Wearhouse at risk of overpaying? In this segment from Thursday's Consumer Countdown, Motley Fool analysts Mark Reeth and Sean O'Reilly discuss why the market likes the possibility of a deal finally happening here, and whether the new company would border on constituting a monopoly.

Looking for retailers that are dominating their industry while others falter?
To learn about two retailers with especially good prospects, take a look at The Motley Fool's special free report: "The Death of Wal-Mart: The Real Cash Kings Changing the Face of Retail." In it, you'll see how these two cash kings are able to consistently outperform and how they're planning to ride the waves of retail's changing tide. You can access it by clicking here.

The article Could Men's Wearhouse Finally Find the Right Price for Jos. A. Bank? originally appeared on

Mark Reeth has no position in any stocks mentioned. Sean O'Reilly has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not 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.

Copyright © 1995 - 2014 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Can't get enough business news?

Sign up for Finance Report by AOL and get everything from retailer news to the latest IPOs delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.