Walmart to acquire online men's clothing retailer Bonobos for $310M

Walmart to acquire online men's clothing retailer Bonobos for $310M

"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", Lore said in a statement Friday. "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.

But, perhaps more by intent than coincidence Amazon also announced it would be buying Whole Foods for $13.7 billion. Walmart won't sell Bonobos apparel in its stores, but will continue to offer it on Bonobos.com and possibly on Jet.com.

These new brands help Walmart improve the experience for existing customers and extend its reach to new customers, Ravi Jariwala, senior director of public relations at Walmart.com, told Retail Dive last month. And in March, Walmart announced that it had purchased ModCloth, an online seller of women's clothing and accessories that targets customers looking for full sizes.

Jet.com, an e-commerce company, for $3 billion August 8.

The Bonobos founder also released a blog post on Friday in an attempt to convey to customers why he believes that acquisition is a good move for the brand.

The world's biggest retailer has been working aggressively to close the gap with rival Amazon.com Inc under the leadership of Chief Executive Doug McMillon and new e-commerce chief Marc Lore. In this role, Dunn will create new products for consumers and discover new channels through which they can buy them. Customers took to Bonobos' social media pages in droves - and the vast majority were not happy about the deal.

Shortly before Walmart bought Jet, the online retailer had purchased ShoeBuy for about $70 million.

Unlike many startups, Bonobos, founded in 2007 by co-founders Andy Dunn (who in 2015 returned as CEO) and Brian Spaly (who founded Trunk Club and this year left the concierge service, now owned by Nordstrom) generates a profit and enjoys $150 million in annual sales, raising about $127 million to date from investors including Accel Partners, Lightspeed Venture Partners and Nordstrom. The retailer also has rapidly expanded its online assortment to more than 50 million items as well. They fit really well, and I don't want to buy them from Walmart.

Building up Walmart.com was the first step.

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