“One of the most important times for a family business comes when it’s time for one generation to help the next move into owning and leading the business, and it is now time for my son, Steve Davis, to lead this company into the future,” said Gary Davis, Chief Executive Officer. “Frequently, a transition like this involves new financing arrangements, and we are fortunate to have Armory Capital partner with us because they share our values. With the merger of these two family-owned companies, it’s ‘business as usual’ for Jim’s Formal Wear.”
The company has a history of growth by acquiring other companies or operations that are a good fit with Jim’s Formal Wear business. “This partnership with Armory Capital will ensure that the resources are available when those opportunities present themselves,” said Gary Davis.
Jim’s Formal Wear is a wholesale formal wear rental company that serves nearly 6,000 menswear stores, bridal shops and other formalwear-related retailers in the country. The company has 600 employees and 9 regional service centers and operates a state-of-the-art 102,000-square-foot facility at its headquarters in Trenton, IL. Jim’s Formal Wear was founded in 1922 (www.jimsformalwear.com).
The financial arrangement with Armory Capital enables the Davis family to continue to have a significant investment in Jim’s Formal Wear. Steve Davis will transition from the role of President and COO to CEO over the next 12 months. Gary Davis will work closely with Steve Davis during the transition and then enter into a long-term consulting contract to help with the transition and provide continuity.
Steve Davis, COO of Jim’s Formal Wear, said that the Davis family was very careful in interviewing and selecting Armory Capital as the new financial partner for Jim’s Formal Wear. “One of the top priorities was to ensure that our new partner would maintain our culture and the high level of commitment to sharing the company’s success with our team members and providing quality merchandise and service to our customers.”
Armory Capital is a family investment office founded by Jacob Ambrose, Rusty Freeland and Greg Lykins to manage the investments of the Meyer family. The firm invests from $5 million to $25 million in companies with revenue of at least $10 million and cash flow of at least $2 million. Sectors of interest include agribusiness, business services, consumer products and retail, financial services, healthcare services, manufacturing, media, and transportation. Armory Capital is based in Champaign, IL. To visit the Armory Capital website click HERE. web01.kfmb.com/armory_capital/index.php
© 2013 PEPD • Private Equity’s Leading News Magazine • 1-28-13