Men's Wearhouse buys Joseph Abboud at 97.5 million

Men's Wearhouse has announced the acquisition of designer Joseph Abboud’s brands for 97.5 million dollars in cash. The deal is expected to be sealed in the third quarter. “This transaction accelerates our strategy of offering exclusive brands

with broad appeal at attractive prices,” Men’s Wearhouse Chief Executive Doug Ewert said in a statement.

The purchase of JA Holding Inc., which is majority-owned by funds affiliated with J.W. Childs Associates, gives Men’s Wearhouse Inc. exclusive labels to sell in its stores.

The acquisition is the first movement of the retailer's new strategy that comes a month after Men's Warehouse saw its founder left.

Joseph Abboud has served as Chief Creative Director of Men’s Wearhouse since December.

Men's Warehouse acquires Joseph Abboud's brands

The acquisition of JA Holding, parent company of the Joseph Abboud brand, brings along the purchase of other brands such as Joseph Abboud Boys, Joseph Abboud Home and Joe Joseph Abboud. It also includes JA's U.S. tailored clothing factory, which has 450 workers, as revealed by the company on Thursday.

JA Holding was up to now majority owned by funds related to J.W. Childs Associates.

Men's Wearhouse has advanced its intentions to finance the buyout and its existing 200 million dollars repurchase program with available cash and proceeds from an existing credit facility.