Men’s Wearhouse Buying Abboud Brand For $97.5M
FREMONT, Calif. (AP) — Men's Wearhouse says it is buying the Joseph Abboud brand for about $97.5 million in cash.
The deal will broaden the Men's Warehouse roster of exclusive brands. It also follows the company's decision to fire its founder George Zimmer as executive chairman last month.
The men's clothing and accessories company already has a relationship with Joseph Abboud, who created the brand that bears his name. Abboud has served as chief creative director at Men's Wearhouse Inc. since December.
The deal is with JA Holding Inc., parent company of the Joseph Abboud brand. Other brands in the transaction include Joseph Abboud Boys and Joe Joseph Abboud. It also includes JA's U.S. tailored clothing factory, which has 450 workers.
The acquisition is expected to close in the third quarter and add to Men's Wearhouse earnings in fiscal 2014.
Copyright 2013 The Associated Press.