BENTONVILLE, Ark., & NEW YORK -- (Business Wire)
Walmart today announced it has entered an agreement to acquire Bonobos,
Inc. (“Bonobos”), one of the leading apparel brands built on the
internet, for $310 million in cash. Following the closing, Andy Dunn,
founder and CEO of Bonobos will report to Marc Lore, president and CEO
of Walmart U.S. eCommerce, 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.
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.
The announcement comes at a time of growth and innovation in e-commerce
for Walmart. In its most recent quarter, Walmart saw 63 percent growth
in U.S. 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. Since just
the beginning of the year, Walmart.com has rolled out two-day free
shipping with no membership fee, an extra discount for picking up orders
in stores and the ability to easily reorder online or store purchases.
And, Jet.com continues to provide a strong avenue for reaching an urban,
millennial customer.
“We’re seeing momentum in the business as we expand our value
proposition with customers and it’s incredible to see how fast we’re
moving,” said Lore. “Adding innovators like Andy will continue to help
us shape the future of Walmart, and the future of retail. I’m thrilled
to welcome Andy and the entire Bonobos team. They’ve created an amazing
product and customer experience, and that will not change. In fact, Andy
will be a great influence on the company, especially in leading our
collection of exclusive brands offered online.”
The acquisition of Bonobos and the leadership of Dunn will create more
new products for consumers and new ways to buy them.
“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.”
The addition of Bonobos is part of a broader e-commerce strategy to
enhance the customer value proposition, including:
-
Offering customers low prices and convenient ways of getting the items
they buy every day, like food and consumables;
-
Offering a vastly expanded assortment while building expertise in key
long-tail categories, like apparel and home; and
-
Adding best-in-class owned, vertical consumer brands to be sold on
those brands’ properties, and over time, Jet.com.
About Bonobos
Bonobos is a clothing brand focused on delivering great fit, excellent
customer experience, and a fun approach to menswear. Launched online in
2007 with its signature line of better-fitting men's pants, Bonobos is
one of the leading apparel brands ever built on the web in the United
States. In 2011 Bonobos extended offline, launching Bonobos Guideshops,
e-commerce stores that deliver personalized, one-to-one service to those
wanting to experience the brand in person. To date, Bonobos has 35
Guideshops across the United States. In 2012, Bonobos expanded its
distribution partnering with Nordstrom, bringing Bonobos apparel into
all 118-doors nationwide and to Nordstrom.com.
About Walmart
Wal-Mart Stores, Inc. (NYSE: WMT) helps people around the world save
money and live better – anytime and anywhere – in retail stores, online,
and through their mobile devices. Each week, over 260 million customers
and members visit our 11,723 stores under 59 banners in 28 countries and
e-commerce websites in 11 countries. With fiscal year 2017 revenue of
$485.9 billion, Walmart employs more than 2.3 million associates
worldwide. Walmart continues to be a leader in sustainability, corporate
philanthropy and employment opportunity. Additional information about
Walmart can be found by visiting http://corporate.walmart.com,
on Facebook at http://www.facebook.com/walmart
and on Twitter at http://www.twitter.com/walmart.
About the Transaction
Citi is serving as financial advisor to Bonobos for the transaction and
Fenwick & West LLP is serving as its legal advisor. Weil, Gotshal &
Manges LLP and Hogan Lovells are serving as legal advisors to Walmart
for the transaction.
For reference:
Walmart
Agrees to Acquire Jet.com, One of the Fastest Growing e-Commerce
Companies in the U.S. (August 2016)
Walmart
Completes Acquisition of Jet.com (September 2016)
Walmart
Announces the Acquisition of Moosejaw, a Leading Online Outdoor Retailer
(February 2017)
Walmart
Announces the Acquisition of Modcloth, a Leading Online Women’s Retailer
(March 2017)
View source version on businesswire.com: http://www.businesswire.com/news/home/20170616005128/en/
Contacts:
Walmart Media Relations
Ravi Jariwala, 1-800-331-0085
http://news.walmart.com/reporter
or
Bonobos
PR
pr@bonobos.com
Source: Wal-Mart Stores, Inc.
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