US-based retailer Men's Wearhouse is expanding its corporate apparel business through a GBP61m (US$97.3m) deal to buy UK specialist Dimensions Clothing Limited and certain parts of Alexandra Plc.

"These transactions give Men's Wearhouse a strong market position in UK corporate apparel," explained George Zimmer, Men's Wearhouse founder, chairman and chief executive officer.

The combined businesses will be organised into a UK-based holding company, of which Men's Wearhouse will control 86% and certain existing shareholders of Dimensions will control 14%.

While few details of the deal have been revealed, it is expected to be accretive to earnings excluding transaction and integration expenses this year. And revenue from the two businesses is forecast at GBP130m in 2011. Operationally, Dimensions' management will join the Men's Wearhouse organisation.

"Our new UK organisation has strong sourcing operations in Asia and Eastern Europe and will service clients from multiple distribution facilities," Zimmer added.

Dimensions supplies corporate clothing to several of the United Kingdom's largest food and non-food retailers, while Alexandra is a well-known workwear brand with a 50-year legacy.  

As well as selling designer, brand name and private label suits, sport coats, furnishings and accessories in its Men's Wearhouse, Moores and K&G stores, retailer is also a leading provider of tuxedo rentals.

In addition, Men's Wearhouse operates a corporate apparel and uniform division under the Twin Hill name which supplies tailored and casual clothing for men and women.

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