Walmart is acquiring Bonobos, a menswear retailer launched online in 2007, 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. Mr. Dunn will oversee the company’s collection of digitally-native vertical brands, says Walmart. 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, according to the company.
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.
In its most recent quarter, Walmart saw 63 per cent growth in U.S. e-commerce sales, the majority coming from organic growth in Walmart.com.
Citi is serving as financial advisor to Bonobos for the transaction and Fenwick & West is serving as its legal advisor. Weil, Gotshal & Manges and Hogan Lovells are serving as legal advisors to Walmart for the transaction.
[Image courtesy: Bonobos]