Flash Report 4 minutesRegister for Free Access

Walmart to Acquire Bonobos for $310 Million in Cash

Executive Summary

  • Walmart announced the signing of an agreement to acquire Bonobos, Inc., a leading apparel brand built on the Internet, for $310 million in cash.
  • Following the closing, Bonobos will report to Marc Lore, President and CEO of Walmart U.S. eCommerce. The Bonobos and recently-acquired ModCloth brands will be offered on Jet.com and in a variety of countries over time.
  • The acquisition, subject to regulatory approval, is expected to close toward the end of the second fiscal quarter this year, or the beginning of the third quarter.
  • Bonobos offers a young and loyal male millennial customer base, which is less price-sensitive and focuses greatly on quality.
  • Although the acquisition is likely to hurt profitability slightly in the short term, it can offer major benefits over the long term as Walmart scales up the brand.

Please Login to read the full report. Not a member? Register for a free user account.