HOUSTON: Men's Wearhouse announced that it has acquired Dimensions
Clothing Limited ("Dimensions") and certain assets of Alexandra, plc, two
leading providers of corporate clothing uniforms and workwear in the United
Kingdom, for a total cash consideration of approximately 61 million pounds
Sterling.
The combined businesses are organized into a UK-based holding company, of
which Men's Wearhouse will control 86% and certain existing shareholders of
Dimensions will control 14%. The acquisition is expected to be accretive to
earnings excluding transaction and integration expenses in FY2010. Projected
annualized FY2011 revenue of the combined businesses is expected to be
approximately 130 million pounds, and earnings are also expected to be
accretive. No other terms were disclosed.
George Zimmer, Men's Wearhouse Founder, Chairman and Chief Executive
Officer, stated, "We are excited to expand our corporate apparel operations
by acquiring Dimensions and the assets of Alexandra. These transactions give
Men's Wearhouse a strong market position in UK corporate apparel.
"Operationally, Dimensions' management will join our organization. Like
Men's Wearhouse, Dimensions' management team has built an organization
dedicated to servicing their customers. 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 non-food
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 UK
organization has strong sourcing operations in Asia and Eastern Europe and
will service clients from multiple distribution facilities," concluded
Zimmer.
The Company has scheduled an analyst meeting in New York City to review
this transaction. The Men's Wearhouse Corporate Apparel Analyst Day, to be
held Tuesday, August 17, 2010, is by invitation only. Please contact Ken
Dennard at DRG&E for more details at +1-713-529-6600 or at ksd@drg-e.com.
All currency-related figures in this release are expressed in British
Pounds Sterling (GBP) and not in US Dollars (USD).
Founded in 1973, Men's Wearhouse is one of North America's largest
specialty retailers of men's apparel with 1,239 stores. The Men's Wearhouse,
Moores and K&G stores carry a full selection of designer, brand name and
private label suits, sport coats, furnishings and accessories and Men's
Wearhouse and Tux stores carry a limited selection. Tuxedo rentals are
available in the Men's Wearhouse, Moores and Men's Wearhouse and Tux stores.
This press release contains forward-looking information. The
forward-looking statements are made pursuant to the Safe Harbor provisions of
the Private Securities Litigation Reform Act of 1995. These forward-looking
statements may be significantly impacted by various factors, including
sensitivity to economic conditions and consumer confidence, possibility of
limited ability to expand Men's Wearhouse stores, possibility that certain of
our expansion strategies may present greater risks, changes in foreign
currency rates and other factors described in the Company's annual report on
Form 10-K for the fiscal year ended January 30, 2010 and Form 10-Q for the
quarter ended May 1, 2010.
For additional information on Men's Wearhouse, please visit the company's
website at http://www.menswearhouse.com. Dimensions' website is
www.dimensions.co.uk.
CONTACT: Neill Davis, EVP & CFO, Men's Wearhouse +1-281-776-7000
Ken Dennard, DRG&E +1-713-529-6600