Walmart is buying Bonobos for $310 million

Geronimo Vena
Giugno 18, 2017

However, Andy Dunn, Bonobos' founder and CEO, who is now taking on the role of senior vice president of digital consumer brands for Walmart US ecommerce, says that the decision is in line with the company's founding ethos.

For Walmart, the deal marks at least its fourth acquisition of a digital-first retailer since Marc Lore took over as head of e-commerce in the US last fall - others have included Modcloth and ShoeBuy. Wal-Mart reported its US e-commerce sales jumped 63 percent during the first quarter of the current fiscal year, but much of the growth was because of the two-day free shipping program and other initiatives introduced by Lore.

But sources previously told Recode that you shouldn't expect to see Bonobos trousers or shirts sold in Walmart stores or on Walmart.com.

"They've created an wonderful product and customer experience, and that will not change", Lore said in the statement. These are brands born online, and owned from design through distribution. Yet the mega-retailer is adding menswear company Bonobos, which started online and now has boutiques in cities and in Nordstrom stores, to its collection of online brands.

The acquisition, which is subject to regulatory approval, is expected to close toward the end of the second quarter or beginning of the third quarter of this fiscal year.

Bonobos co-founder and CEO Andy Dunn, and other top executives, can earn an extra $20 million combined if they remain with Walmart for four years, one of these people said. In 2012, Bonobos expanded its distribution partnering with Nordstrom, bringing Bonobos apparel into all 118-doors nationwide and to Nordstrom.com.

Walmart today doubled down on its efforts to continue building out a online retail fashion business in its bid to outpace Amazon in the wider world of commerce and specifically e-commerce.

As of two months ago, Bonobos was projecting 2017 revenue of around $150 million, and was growing around 30 percent year over year, according to a source. Walmart continues to be a leader in sustainability, corporate philanthropy and employment opportunity.

The brands Dunn will be responsible for, including Bonobos and the recently acquired ModCloth, will be offered on Jet.com and possibly other Walmart venues in various countries over time.

For the transaction, Citi is serving as financial adviser to Bonobos, with Fenwick & West LLP acting as its legal adviser, while Weil, Gotshal & Manges LLP and Hogan Lovells are serving as legal advisers to Walmart.

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