Express and WHP Global Buy Bonobos From Walmart

Express (EXPR) and WHP Global have acquired Bonobos from Walmart for a combined $75 million.

Brand management firm WHP Global will buy the Bonobos brand for $50 million, while fashion apparel retailer EXPR will acquire the operating assets and assume the related liabilities of the menswear brand for $25 million, the companies said in a Thursday (April 13) press release.

WHP Global and Express entered into a strategic partnership in January, and this is the first joint acquisition they have made under that partnership, according to the release.

“Bonobos is an ideal first acquisition for our new partnership with EXPR and will be a terrific addition to our fashion vertical,” WHP Global Chairman and CEO Yehuda Schmidman said in the release. “WHP Global’s portfolio will include more than 10 powerful consumer brands approaching $7 billion in total retail sales.”

With the acquisition, EXPR will add a third brand to the EXPR lineup that also includes Express and UpWest, expand the Bonobos brand into new categories and gain economies of scale, according to the release.

“Bonobos is delivering double-digit sales growth, and we plan to continue that momentum while also realizing operating synergies and other economies of scale,” EXPR CEO Tim Baxter said in the release.

Bonobos was acquired by Walmart in 2017 for $310 million. The purchase was one of several Walmart made at the time to be more competitive with Amazon and offer a more varied eCommerce business that better targets the needs of younger shoppers.

As part of that effort, the retail giant also acquired online women’s retailer ModCloth and online outdoor retailer Moosejaw shortly before buying Bonobos.

Walmart sold ModCloth to Go Global Retail in 2019 and sold Moosejaw to Dick’s Sporting Goods in February.

Following the close of the latest transaction involving Bonobos, Bonobos CEO John Hutchison will become brand president and report to Baxter, according to the press release.

“This is an exciting moment for Bonobos as we embark on the next phase of our growth,” Hutchison said in the release. “Born a digitally native vertical brand, we plan to build on our strength in eCommerce and customer loyalty, leverage EXPR’s expertise in omnichannel retailing and scale through WHP Global’s partnerships in licensing and distribution.”

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