Wal-Mart will pay $310 million in cash for the apparel upstart, which focuses on fitted clothing for men.
Andy Dunn, Bonobos' founder and CEO, who is now taking on the role of senior vice president of digital consumer brands for Walmart US ecommerce, told Business Insider he was "extremely anxious" about how the news of the acquisition would go over. Amazon dominates online purchases, while Walmart owns traditional retail so hard that it made more money previous year than Apple and Exxon, the second- and third-biggest USA companies, combined.
According to Lore, Bonobos has created not only a great line of products but also offers an outstanding "customer experience".
The acquisition, which is subject to regulatory approval, is expected to close toward the end of the second quarter or beginning of the third quarter of this fiscal year.
Bonobos, founded in 2007, is an online seller of men's apparel.
Walmart has made it clear that the brands will continue as standalone sites, and executives from those companies have sought to ensure loyal customers that little will change.
But more importantly, it gives Walmart and Jet.com another chip in its ongoing battle for supremacy against Amazon. In 2011 Bonobos extended offline, launching Bonobos Guideshops, e-commerce stores that deliver personalized, one-to-one service to those wanting to experience the brand in person. It also means that Bonobos clothing is not available on Amazon.com.
Wal-Mart's shares were down about 6 percent at $74.43 in morning trading on Friday, after online rival Amazon.com Inc said it would buy upmarket grocer Whole Foods Market. Each week, over 260 million customers and members visit our 11,723 stores under 59 banners in 28 countries and e-commerce websites in 11 countries. Walmart continues to be a leader in sustainability, corporate philanthropy and employment opportunity.
For the transaction, Citi is serving as financial adviser to Bonobos, with Fenwick & West LLP acting as its legal adviser, while Weil, Gotshal & Manges LLP and Hogan Lovells are serving as legal advisers to Walmart. "We're really excited about this opportunity and hope deep down in your hearts you'll continue to be the unbelievable customers we love and appreciate", Bonobos wrote.