Men's Wearhouse Signs Definitive Agreement to Acquire After Hours Formalwear
November 17 2006 - 7:00AM
PR Newswire (US)
HOUSTON, Nov. 17 /PRNewswire-FirstCall/ -- Men's Wearhouse
(NYSE:MW) today announced that it has signed a definitive agreement
with Federated Department Stores, Inc. (NYSE:FD) and David's
Bridal, Inc. to acquire After Hours Formalwear ("After Hours") for
a cash consideration of $100 million, subject to certain
adjustments. After Hours is the largest men's formalwear chain in
the U.S. specializing in rental of tuxedos and related furnishings.
The transaction is subject to the customary regulatory approvals
and is expected to close on or after February 2, 2007. No other
terms were disclosed. George Zimmer, Men's Wearhouse founder,
chairman and chief executive officer, stated, "We are extremely
pleased to announce this acquisition as we execute our strategy to
be a market leader in men's tailored clothing categories and
related services in North America. "We are committed to creating
exceptional experiences, choices and convenience for our customers.
This acquisition will provide our customers with a broader
selection of formalwear and creates a new foundation for growth by
driving efficiencies across the combined assets. "Combining the
Men's Wearhouse and Moores brands' 654 U.S. and Canadian locations,
which rented over 1 million tuxedos last year, with After Hours 511
stores we will have 1,165 locations that have an estimated baseline
volume of three million tuxedo rental units in North America. We
firmly believe we can integrate the two organizations during 2007
and realize significant benefits for shareholders beginning in 2008
and beyond," concluded Zimmer. After Hours is the largest men's
formalwear chain in the U.S. After Hours operates 511 stores in 35
states under After Hours Formalwear, Mr. Tux and Squire Tux store
fronts and employs approximately 4,200 full and part time
personnel. The stores feature the After Hours private brand as well
as exclusive designer brands, such as Claiborne, Tommy Hilfiger and
Nicole Miller. After Hours has an exclusive relationship with
David's Bridal, the nation's largest bridal retailer with 269
stores and an online offering. That exclusivity will remain
effective after the acquisition and will be extended to Men's
Wearhouse and Moores store brands. Men's Wearhouse is one of North
America's largest specialty retailers of men's apparel with 743
stores. Founded in 1973, the stores carry a full selection of
designer, brand name and private label suits, sport coats,
furnishings and accessories, including tuxedo rentals available in
the Men's Wearhouse and Moores store locations. 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 unfavorable local, regional and national
economic developments, disruption in retail buying trends due to
homeland security concerns, severe weather conditions, aggressive
advertising or marketing activities of competitors and other
factors described herein and in the company's annual report on Form
10-K for the year ended January 28, 2006 and subsequent Forms 10-Q.
For additional information, please visit the company's website at
http://www.menswearhouse.com/ . CONTACT: Neill Davis, Men's
Wearhouse (713) 592-7200 Ken Dennard, DRG&E (713) 529-6600
DATASOURCE: The Men's Wearhouse, Inc. CONTACT: Neill Davis of The
Men's Wearhouse, Inc., +1-713-592-7200; or Ken Dennard of
DRG&E, +1-713-529-6600, for The Men's Wearhouse, Inc. Web site:
http://www.menswearhouse.com/
Copyright
Federated Dept (NYSE:FD)
Historical Stock Chart
From Jun 2024 to Jul 2024
Federated Dept (NYSE:FD)
Historical Stock Chart
From Jul 2023 to Jul 2024
Real-Time news about Federated Dept Store (New York Stock Exchange): 0 recent articles
More Federated Dept Store News Articles