Global business advisory firm AlixPartners has been hired by Men’s Wearhouse to aid in the integration of its recent acquisition of Jos. A. Bank Clothiers.
Although the merger between the two retailers has yet to close, Men’s Wearhouse president and 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 $100 to $150 million 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 the two retailers – who go to market with diametrically opposed promotional strategies – represents a unique integration challenge to create a retailer with annual sales of $3.5 billion.
According to Ewart, once the transaction has received all necessary regulatory approvals the deal is expect to close in what he called a timely fashion prior to beginning a smooth integration.
“As we have previously stated, there will be no rebranding or remodels required – Jos. A. Bank's store banner will remain in place,” Ewart said. “Men's Wearhouse expects to implement the best practices of both companies to drive further operational and financial success. Management will consist of the most qualified individuals from both organizations.”
Jos. A. Bank’s shareholders have until April 9 to tender their shares in the company at the $65 a share price Men’s Wearhouse agreed to pay earlier this year.