US: Men's Wearhouse eyes $150m savings through merger
Men's Wearhouse has engaged advisory firm AlixPartners to support the integration of Jos A Bank
Last month, Men's Wearhouse secured a deal to acquire the US men's apparel and footwear business following a five-month merger tussle between the two firms.
The company has since engaged advisory firm AlixPartners to support the integration of Jos A Bank, which it says will involve implementing the "best practices of both companies to drive further operational and financial success".
Men's Wearhouse CEO, Doug Ewert, said: "AlixPartners' vast experience in retail as well as in large merger integration situations will provide significant support to our company's goal of achieving an estimated $100m to $150m of annual run-rate synergies over three years through improving purchasing efficiencies, optimizing customer service and marketing practices and streamlining duplicative corporate functions."
The combination of Men's Wearhouse and Jos A Bank will produce the fourth largest US men's apparel retailer with pro forma sales of around $3.5bn.
The company reiterated there will be no re-branding or remodels as part of the deal and the Jos A Bank's store banner will remain in place.
"Management will consist of the most qualified individuals from both organizations," Ewert added.
Formal clothing specialist Men's Wearhouse has been ordered to pay $42.6m in damages to a former licensee of its JA Apparel business....
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