Wal-Mart Acquires Bonobos for $310 Million
Wal-Mart Stores Inc. today announced it has entered an agreement to acquire Bonobos, Inc., the 10-year-old men's clothing brand that started by selling pants online, but has since expanded its assortment and opened dozens of brick-and-mortar showrooms, for $310 million in cash. 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. Following the closing, Andy Dunn, founder and CEO of Bonobos, will report to Marc Lore, president and CEO of Wal-Mart U.S. E-Commerce, and oversee the company’s collection of digitally native vertical brands the behemoth has purchased recently, including Jet.com. ShoeBuy, ModCloth and now Bonobos.
The acquisition of Bonobos and the leadership of Dunn will create more new products for consumers and new ways to buy them, according to Wal-Mart. “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, in a statement. “Adding innovators like Andy will continue to help us shape the future of Wal-Mart, and the future of retail."
Total Retail’s Take: This announcement comes at a time of growth and innovation in e-commerce for Wal-Mart. In its most recent quarter, for example, the company reported 63 percent growth in U.S. e-commerce sales, the majority coming from organic growth on Walmart.com. For Bonobos, the deal came together after the company was having trouble raising a new round of funding. Wal-Mart continues to use acquisition as the vehicle for its online growth, targeting fast-growing, digital-native brands such as Jet, ModCloth and Bonobos. The battle with Amazon continues, with Wal-Mart adding another brand to aid its fight.