The Men’s Wearhouse has signed an agreement to acquire JA Holding, Inc., the parent company of American clothing brand, Joseph Abboud and a portfolio company of J.W. Childs Associates, for $97.5 million in cash. J.W. Childs Associates first invested in Joseph Abboud in March 2004.
Joseph Abboud is a men’s apparel company that designs, merchandises, sources, manufactures, markets and distributes a range of products, including suits, sport coats and trousers. The company is a supplier to Saks, Neiman Marcus, Nordstrom, Bloomingdale’s and Macy’s West. The company manufactures its suits, sport coats and trousers at a company-owned factory dedicated exclusively to Joseph Abboud in New Bedford, MA. Joseph Abboud was founded in 1986 and is headquartered in New York (www.josephabboud.com).
“We are proud of the progress that we have made during our nine-year partnership with J.W. Childs in building Joseph Abboud into a modern, sophisticated menswear and lifestyle brand. We look forward to continued growth in the brand at Men’s Wearhouse,” said Anthony Sapienza, President and CEO at JA Holding.
J.W. Childs Associates invests in middle market companies based in North America. Sectors of interest include consumer products, specialty retail and healthcare. The firm was founded in 1995 and is based in Waltham, MA (www.jwchilds.com).
Men’s Wearhouse (NYSE: MW) is a specialty retailer of men’s apparel with 1,141 stores. The company was founded in 1973 and is headquartered in Houston (www.menswearhouse.com).
Men’s Wearhouse expects to finance this acquisition with cash on hand and/or from availability under its existing credit facilities.
J.P. Morgan Securities is serving as financial advisor to Men’s Wearhouse, and Willkie Farr & Gallagher is serving as legal advisor. Kaye Scholer is serving as legal advisor to JA Holding and North Point Advisors is serving as financial advisor.
The transaction is expected to close in the third quarter of 2013.
© 2013 PEPD • Private Equity’s Leading News Magazine • 7-19-13