Menswear brand Bonobos is changing hands once again, with brand management firm WHP Global and Express Inc. (EXPR) signing a definitive agreement with Walmart to acquire the company for $75 million.
Menswear brand Bonobos is changing hands once again, with brand management firm WHP Global and Express Inc. (EXPR) signing a definitive agreement with Walmart to acquire the company for $75 million.
The deal, which is expected to close in the current quarter, marks the end of Walmart's Marc Lore chapter, which included deals for ModCloth and Moosejaw, businesses that the retailer later sold. WHP is paying $50 million for the Bonobos brand, while EXPR is paying the remaining $25 million for Bonobos’ operating assets and related liabilities.
John Hutchinson, Bonobos' CEO, will become brand president of Bonobos and report to EXPR CEO Tim Baxter. Baxter said in a statement that Bonobos is delivering double-digit sales growth and that the companies plan to continue that momentum while also realizing operating synergies and other economies of scale.
EXPR, which operates in the menswear space, expects the Bonobos deal to help it leverage its existing strength in the category and use marketing to increase awareness and customer acquisition for it and Bonobos. The retailer also expects to find synergies and achieve economies of scale in numerous departments including but not limited to logistics, product & sourcing, real estate and technology.
Bonobos, which began its business selling chinos before branching out to other menswear segments, will continue to operate its guide shop showrooms where customers can try on clothes and order them online for delivery.
Yehuda Shmidman, WHP Global chairman and CEO, said that Bonobos is an ideal first acquisition for the new partnership with EXPR and will be a terrific addition to the fashion vertical. Post-closing, WHP Global’s portfolio will include more than ten powerful consumer brands approaching $7 billion in total retail sales.
According to Retail Wire, the acquisition of Bonobos by WHP Global and EXPR is a positive move for the menswear brand. The companies are expected to leverage their existing strengths in the category and use marketing to increase awareness and customer acquisition. The deal is also expected to bring synergies and economies of scale in numerous departments, allowing Bonobos to continue
Sources: https://retailwire.com/discussion/is-bonobos-better-off-without-walmart/
