Men's Wearhouse (NYSE:TLRD) likes the way Joseph Abboud looks. Likes it so much, in fact, that it just bought the company.
On Thursday, Men's Wearhouse announced it has signed a definitive agreement to acquire Joseph Abboud parent company JA Holding from its owner, private equity firm J.W. Childs Associates, for $97.5 million, cash. With JA Holding comes the Joseph Abboud, JOE Joseph Abboud, Joseph Abboud BOYS, and Joseph Abboud Home brands, which are carried by department stores and specialty retailers in the U.S. and "more than 50 countries worldwide." Also coming with the purchase is JA Holding's U.S. factory, and the 450 employees who work there.
In making this acquisition, Men's Wearhouse brings in-house the company founded by its own Chief Creative Director, Mr. Joseph Abboud himself. New Men's Wearhouse CEO Doug Ewert pronounced himself "thrilled to reunite Joseph with his iconic brand at Men's Wearhouse," asserting that this purchase "accelerates our strategy of offering exclusive brands with broad appeal at attractive prices."
As for the affect on the company itself, Ewert predicts that buying JA Holding will "enhance our margins and profitability and become accretive to our earnings in fiscal year 2014."
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