US retailer Express Inc. and brand management firm WHP Global LLC have announced a joint acquisition of menswear retailer Bonobos Inc. According to a statement released on Friday, the two companies will pay a total of $75 million (€69 million) to retailer Walmart Inc., which acquired Bonobos in 2017 for $310 million, as part of a binding agreement that has now been reached.
The transaction is the first result of a strategic partnership between Express and WHP Global signed earlier this year. As part of the agreement, WHP Global will acquire the Bonobos brand rights for USD 50 million, while Express will receive the menswear retailer’s operating divisions for USD 25 million, but will also assume its financial obligations.
Both companies said that following the proposed acquisition, Express will operate bonobos’ US operations as WHP Global’s exclusive licensing partner. John Hutchinson, the current CEO of Bonobos, will report directly to Express CEO Tim Baxter as brand president of the menswear label after the deal closes.
With the acquisition, which is to be completed in the third quarter of the current 2023/24 financial year, Express intends to expand its presence in the menswear segment in order to strengthen previously underrepresented product categories. The retailer also hopes to increase its sales and operating profit. In doing so, Express relies on “synergies and increases in efficiency” because bonobos will use the company’s existing omnichannel platform in the future.