BENTONVILLE, Ark. -- (Business Wire)
Wal-Mart Stores, Inc. (NYSE: WMT) today announced completion of the
company’s acquisition of Jet.com, Inc., following expiration of the
waiting period under federal regulations. The news was initially shared
on Instagram by Walmart President and CEO Doug McMillon.
As previously disclosed, Walmart acquired Jet.com for approximately $3billion in cash, a portion of which will be paid over time, and $300
million of Walmart shares, all of which willbe paid over time.
The deal builds on Walmart’s strong e-commerce foundation and is
intended to help accelerate growth and deliver a seamless shopping
experience for customers. Walmart.com and Jet.com will operate as
separate brands, while leveraging
technology and talent across both entities.
“We’re thrilled to welcome the Jet.com team to the Walmart family and
excited to expand the ways we serve our current customers and reach new
customers online,” McMillon said. “Jet brings a unique approach and
technology that puts customers in control of their experience, helping
them find additional ways to save.”
With the close of the deal, Marc Lore, founder and CEO of Jet.com, now
joins Walmart’s leadership team, serving as executive vice president at
Walmart and president and CEO of Walmart eCommerce in the U.S. He will
lead both Walmart.com and Jet.com, reporting to McMillon.
“I can’t wait to jump in and get started,” Lore said. “I’ll be spending
a lot of time with the team in the coming weeks and months focused on
scaling Walmart.com and Jet.com, building on our solid foundations.
Together we will be stronger and move even faster to reimagine the
future of shopping.”
Guidance and Other Deal Details:
As originally announced on August
8, approximately $300 million of Walmart shares willbe paid
over time as part of the transaction. As part of this, Lore received
restricted stock units providing for the issuance of 3,554,093 shares of
Walmart common stock par value $0.10 per share, to be paid over a
five-year period. The shares underlying the restricted stock units vest
according to the following schedule, subject to Lore’s continued
employment by Walmart through each vesting date: (1) 10% on the first
anniversary of the closing of Walmart’s acquisition of Jet.com, Inc.;
(2) 1.25% per month for the 12 months between the first and second
anniversaries of the closing; (3) 1.67% per month for the 12 months
between the second and third anniversaries of the closing; (4) 2.08% per
month for the 12 months between the third and fourth anniversaries of
the closing; and (5) 2.5% per month for the 12 months between the fourth
and fifth anniversaries of the closing. Notwithstanding the requirement
that Lore remain employed to continue to vest in the restricted stock
units, if Walmart terminates Lore’s employment without cause or he
resigns for good reason, Lore will fully vest in any unvested shares of
restricted stock units according to the vesting schedule set forth above.
The award of restricted stock units was granted outside of Walmart’s
2015 Stock Incentive Plan but, except as provided otherwise in the award
agreement, will generally be subject to the same terms and conditions as
apply to awards of restricted stock units under that Plan. Walmart’s
Board of Directors and its Compensation, Nominating and Governance
Committee approved this restricted stock unit award in reliance on the
employment inducement exception to shareholder approval provided under
Section 303A.08 of the NYSE Listed Company Manual.
Walmart initially estimated a $0.05 dilutive impact to 2017 fiscal year
earnings associated with this acquisition, as a result of the operating
losses and one-time transaction costs, assuming the transaction would
close near the beginning of the company’s fourth quarter. With the close
occurring in the middle of the third quarter, the company expects some
marginal dilution above its initial estimate to 2017 fiscal year
earnings.
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, nearly 260 million
customers and members visit our 11,527 stores under 63 banners in 28
countries and e-commerce websites in 11 countries. With fiscal year 2016
revenue of $482 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://facebook.com/walmart
and on Twitter at http://twitter.com/walmart.
Online merchandise sales are available at http://www.walmart.com
and http://www.samsclub.com.
About Jet.com
Jet is among the fastest growing and most innovative e-commerce
companies in the U.S. With best-in-class technology that rewards
customers in real time with savings on items that are bought and shipped
together, Jet reached $1 billion in run-rate Gross Merchandise Value
(GMV) and offered 15 million SKUs in its first year, relying on a select
group of more than 2,400 retailer and brand partners tailored to create
an attractive and distinctive assortment for consumers. Jet has a
growing customer base of urban and millennial customers with more than
400,000 new shoppers added monthly and an average of 25,000 daily
processed orders.
Forward Looking Statements
The statements in this press release regarding the impact of this
acquisition are believed to be “forward-looking statements” within the
meaning of the Private Securities Litigation Reform Act of 1995, as
amended (the “Act”), that are intended to enjoy the protection of the
safe harbor for forward-looking statements provided by the Act. These
forward-looking statements are subject to certain risks, uncertainties
and other factors.
View source version on businesswire.com: http://www.businesswire.com/news/home/20160919006488/en/
Contacts:
Wal-Mart Stores, Inc.
Investor Relations:
Steve
Schmitt, 479-258-7172
or
Media Relations:
Ravi
Jariwala, 800-331-0085
or
Randy Hargrove, 800-331-0085
Source: Wal-Mart Stores, Inc.
© 2024 Canjex Publishing Ltd. All rights reserved.