LOUISVILLE, Ky.–(BUSINESS WIRE)–Generation Tux, an online suit and tuxedo rental company founded by menswear legend George Zimmer, formerly of Men’s Wearhouse, today announced it has completed the acquisition of 4-year-old Menguin for $25 million. By combining forces, Generation Tux and Menguin will now own the market by providing best-in-class experience and quality in the online formal menswear rental category.
The announcement comes at a time when Menguin has experienced three years at an 800 percent compound annual growth rate, a key reason it caught the attention of Generation Tux’s chairman and CEO, George Zimmer.
“I’ve always known a good suit when I’ve seen one, just as I’ve always known a good investment when it comes my way,” said Zimmer. “We built Generation Tux to be the ultimate high-tech, high-touch clothing rental experience. Menguin’s digital marketing and entrepreneurial leadership sparked my interest; upon meeting, it became clear that we could do more together than apart.”
Bringing Menguin into the fold is part of Generation Tux’s larger e-commerce strategy to strengthen its technological foothold and establish clear market dominance in the yet nascent industry of online tux rentals.
“When George first approached us about marrying the entrepreneurial spirit and marketing technology of Menguin with the backend technology, brand legacy and menswear expertise inherent in the Generation Tux name, we immediately embraced his vision for the union,” said Justin Delaney, now president of Menguin and Generation Tux. “Together, we are well-positioned to become the singular, dominant player in the online formal menswear rental category.”
The two companies will continue to operate as separate brands under the holding company, Gen Tux, Inc., while leveraging their combined operational, technological, fashion and fulfillment prowess to deliver an unparalleled level of customer service marked by better inventory, more styles and availability, and increased customization and flexibility.
Executive leadership of both organizations will move up to the holding company level, with George Zimmer serving as chairman and CEO of Gen Tux, Inc.
The agreement was closed on September 5, 2017, having been approved by of the Board of Directors and stockholders.