Following the close of Wal-Mart Stores Inc.’s acquisition of Bonobos Inc., an apparel brand built on the internet, for $310 million in cash, Bonobos founder and CEO Andy Dunn will come aboard to oversee the mega-retailer’s collection of digitally native vertical brands. Dunn will report to Marc Lore, president and CEO of Walmart U.S. ecommerce, and founder and former CEO of Jet.com, which Walmart acquired last year.
The brands Dunn will be responsible for, including Bonobos and the recently acquired ModCloth, will be offered on Jet.com and possibly other Walmart venues in various countries over time.
“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. “Adding innovators like Andy will continue to help us shape the future of Walmart, and the future of retail. … They’ve created an amazing product and customer experience, and that will not change. In fact, Andy will be a great influence on the company, especially in leading our collection of exclusive brands offered online.”
“We began Bonobos 10 years ago to give men a completely different product and shopping experience: better-fitting, higher-quality clothing, in new and imaginative ways,” Dunn said. That will always remain our mission. We are excited about applying all that we have learned to help shepherd in the next era of retail.”
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. The deal is expected to close toward the end of the second quarter or the beginning of the third quarter of this fiscal year.
Bentonville, Ark.-based Walmart operates 11,723 stores under 59 banners in 28 countries, and ecommerce websites in 11 countries.