10/09/2013 07:39 EDT | Updated 01/23/2014 06:58 EST

Jos. A. Bank plans $2.3 billion acquisition of rival clothes retailer Men's Wearhouse

HAMPSTEAD, Md. - Jos. A. Bank Clothiers says it has proposed to buy fellow retailer Men's Wearhouse for about $2.3 billion in cash in a deal that it expects will immediately help its earnings.

The Hampstead, Md., company says it has offered to pay $48 for each share of Men's Wearhouse.

That represents a 42 per cent premium to the stock's closing price on Sept. 17, the day before Jos. A. Bank. pitched the deal to Men's Wearhouse executives.

The Men's Wearhouse Inc. shares climbed more than 33 per cent to $47 in premarket trading Wednesday. Jos. A. Bank shares also are up almost 10 per cent to $45.75.

Jos. A. Bank Clothiers Inc. says the deal will significantly help earnings. The company said last month its fiscal second-quarter net income fell 39 per cent.