Walmart to Acquire Bonobos and Appoint Andy Dunn to Oversee Exclusive Consumer Brands Offered Online
June 16 2017 - 9:05AM
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)
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Walmart Media RelationsRavi Jariwala, 1-800-331-0085http://news.walmart.com/reporterorBonobos
PRpr@bonobos.com
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