Walmart to acquire leading apparel brand Bonobos for $310 million in cash
California,June17:Walmart has announced that it has entered into an agreement to acquire Bonobos, Inc., one of the leading apparel brands built on the internet, for $310 million in cash. The acquisition, which is subject to regulatory approval, is expected to close toward the end of the second quarter or the beginning of the third quarter of this fiscal year.
Following the closing, Andy Dunn, founder and CEO of Bonobos will report to Marc Lore, president and CEO of Walmart US e-commerce, and oversee the company’s collection of digitally-native vertical brands. These are brands born online, and owned from design through distribution. The brands will be offered on Jet.com and possibly other Walmart brands in a variety of countries over time, and include Bonobos and recently-acquired ModCloth.
“We are seeing momentum in the business as we expand our value proposition with customers and it’s incredible to see how fast we are moving,” said Lore. “Adding innovators like Dunn will continue to help us shape the future of Walmart, and the future of retail. I am thrilled to welcome Dunn and the entire Bonobos team. They have created an amazing product and customer experience, and that will not change. In fact, Dunn will be a great influence on the company, especially in leading our collection of exclusive brands offered online.”
The announcement comes at a time of growth and innovation in e-commerce for Walmart. In its most recent quarter, Walmart saw 63 per cent growth in US e-commerce sales, the majority coming from organic growth in Walmart.com. Walmart’s efforts in e-commerce are empowering customers with low prices, more choices and new levels of convenience.
“We began Bonobos ten years ago to give men a completely different product and shopping experience: better fitting, higher quality clothing, in new and imaginative ways. That will always remain our mission,” Dunn said. “We are excited about applying all that we have learned to help shepherd in the next era of retail.