Well, it’s official! Walmart has announced it has entered an agreement to acquire men’s apparel brand Bonobos 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. E-Commerce, and oversee the company’s collection of digitally-native vertical brands.
The brand will be offered on Jet.com in addition to other Walmart brands in a variety of countries over time, which include 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 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.”
“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,” added Dunn. “That will always remain our mission. We are excited about applying all that we have learned to help shepherd in the next era of retail.”