Express, Inc. and global brand management firm WHP Global agreed to acquire menswear brand Bonobos, Inc. from Walmart, Inc. for a combined purchase price of $75 million, the first jointly-made acquisition by WHP Global and EXPR since finalizing its partnership earlier this year.
Bonobos, founded in 2007 and acquired by Walmart in 2017, distinguished itself in the menswear category based on product fit, customer experience and its Guideshop retail model, delivering consistent growth.
Walmart reportedly paid $310 million for the Bonobos business.
“Our strategic roadmap to transform EXPR to create shareholder value includes achieving profitable growth in our core Express business, which is our first priority, optimizing our omnichannel platform and accelerating our growth and profitability through our partnership with WHP Global,” said Tim Baxter, EXPR chief executive officer.
“Bonobos is delivering double-digit sales growth, and we plan to continue that momentum while also realizing operating synergies and other economies of scale. This is a compelling addition to our brand portfolio, and I expect the transaction will be accretive to operating income and free cash flow positive in fiscal 2023,” continued Baxter.
WHP Global and EXPR said they admire the Bonobos team, led by CEO John Hutchison, who will become brand president of Bonobos and report to Baxter after the transaction closes. Bonobos will remain at its current headquarters in New York.
“Bonobos is an ideal first acquisition for our new partnership with EXPR and will be a terrific addition to our fashion vertical. Post-closing, WHP Global’s portfolio will include more than ten powerful consumer brands approaching $7 billion in total retail sales,” said Yehuda Shmidman, WHP global chairman and chief executive officer.
“This is an exciting moment for Bonobos as we embark on the next phase of our growth. Born a digitally native vertical brand, we plan to build on our strength in eCommerce and customer loyalty, leverage EXPR’s expertise in omni-channel retailing and scale through WHP Global’s partnerships in licensing and distribution,” said Hutchison.
