- Fashion apparel retailer Express Inc EXPR and brand management firm WHP Global (WHP) will acquire menswear brand Bonobos Inc from Walmart Inc WMT for $75 million.
- Bonobos, founded in 2007, was acquired by Walmart in 2017.
- The deal marks the first acquisition to be made jointly by WHP Global and EXPR since finalizing their strategic partnership earlier this year.
- WHP Global will acquire the Bonobos brand for a purchase price of $50 million, while EXPR will acquire the operating assets and assume the related liabilities of the Bonobos business for $25 million.
- EXPR will be granted the right to use the intellectual property acquired by WHP Global for the operation of the Bonobos business in the U.S. In return, EXPR will pay a royalty fee.
- Also Read: Walmart Closes Four Chicago Stores As Losses Run In Millions
- The transaction is expected to close in EXPR's second fiscal quarter of 2023.
- "Bonobos is delivering double-digit sales growth and we plan to continue that momentum while also realizing operating synergies and other economies of scale," said EXPR CEO Tim Baxter.
- "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."
- Bonobos CEO John Hutchison will become Brand President of Bonobos and report to Tim Baxter after the transaction closes. Bonobos will remain at its current headquarters in New York.
- Price Action: EXPR shares are trading higher by 12.75% at $0.7597 in premarket on the last check Friday.
- Photo Via Company
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