Men’s Wearhouse is getting serious about the corporate apparel business.
The Houston-based men’s retailer said Friday it had acquired Dimensions Clothing Limited and certain assets of Alexandra plc, two leading providers of corporate uniforms and workwear in the United Kingdom, for 61 million pounds, or about $97.5 million at current exchange, in cash.
The companies will be organized into a U.K.-based holding company, of which Men’s Wearhouse will control 86 percent and certain existing shareholders of Dimensions will control 14 percent. The acquisition is expected to be accretive to earnings in fiscal 2010 and projected annual sales for the business are expected to be approximately 130 million pounds, or around $207.8 million, in fiscal 2011.
The businesses dwarf Men’s Wearhouse’s current corporate uniform business, which is done under the Twin Hill name. In fiscal 2009, Twin Hill had sales of $13.5 million.
George Zimmer, Men’s Wearhouse founder, chairman and chief executive officer, said: “These transactions give Men’s Wearhouse a strong market position in U.K. corporate apparel. Operationally, Dimensions’ management will join our organization. Over the past five years, the Dimensions organization has grown and developed a world-class customer base, including several of the United Kingdom’s largest food and nonfood retailers. The Alexandra brand has a 50-year legacy in workwear solutions to businesses of all sizes, and is a well-known brand. Additionally, our new U.K. organization has strong sourcing operations in Asia and Eastern Europe and will service clients from multiple distribution facilities.”