Generation Tux acquires Menguin for menswear rental market domination
Generation Tux, the online tux and suit rental company founded by George Zimmer of Men’s Wearhouse fame, has acquired tux rental start-up Menguin for $25 million.
The acquisition will help Generation Tux harness Menguin's digital marketing strategies which will in turn help Generation Tux grow its e-commerce business. Menguin has shown 800 percent growth over the past three years. With the acquisition, Generation Tux and Menguin will essentially own the online rental menswear market.
Zimmer said, "Menguin’s digital marketing and entrepreneurial leadership sparked my interest; upon meeting, it became clear that we could do more together than apart.”
Earlier in his career, Zimmer founded Men's Wearhouse with a group of college roommates in the 1970s. He was the company's CEO and spokesperson until the Board fired him in 2013. He started both a smartphone-based tailoring app called ZTailors that launched publicly in June of 2015 and Generation Tux which launched publicly in September of 2015.
For its part, Menguin is a four year old start-up that has an extensive infrastructure and inventory. It offers customers 14 tux and suit styles to choose from and operates out of six national distribution centers. Menguin currently owns 300,000 suits and tuxes available to rent along with thousands of accessory and color options.
Justin Delaney, now president of Menguin and Generation Tux said the merger will make the entities "the singular, dominant player in the online formal menswear rental category." He said Menguin was attracted to Generation Tux's backend technology, brand legacy and the expertise in menswear that Zimmer brings.
The two brands will continue to operate separately out of a new holding company formed by Zimmer called Gen Tux, Inc. that is headquartered in Louisville, KY. Zimmer will serve as Chairman and CEO of the holding company which will give him executive authority and leadership for both brands.
The $25 million dollar purchase was approved by the Board and closed on September 5 of this year.
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