WHP Global And Express To Aquire Bonobos For A Combined $75 Million

Bonobos is trading hands again. The men’s trouser brand founded by Andy Dunn, was owned by Walmart
WMT
Inc., which acquired it in a deal when it went on a shopping spree for digital native brands in 2017. Global brand management group WHP Global and fashion retailer Express
EXPR
today announced a definitive agreement to acquire Bonobos from Walmart Inc.

WHP Global will acquire the Bonobos brand for $50 million, while Express will acquire the Bonobos operating assets for $25 million, and will operate the Bonobos eCommerce, Guideshops and Wholesale businesses in the U.S. under an exclusive long-term licensing agreement with WHP Global.

Founded in 2007, Bonobos made an impression in the men’s wear industry based on its product fit, which was prioritized, and its Guideshop retail model, which delivered strong, consistent growth.

“Our strategic roadmap to transform Express to create shareholder value includes achieving profitable growth in our core Express business, which is our first priority – optimizing our omnichannel platform and accelerating growth profitably through our partnership with WHP Global,” said Tim Baxter, Express CEO. “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,” Baxter continued.

Bonobos CEO John Hutchinson will become brand president of Bonobos and will report to Baxter after the transaction closes. Bonobos will remain at its headquarters in New York.

“Bonobos is an ideal first acquisition for our new partnership with Express,” said Yehuda Shmidman, WHP Global chairman and CEO. “It will be a terrific addition to our fashion vertical. After closing, WHP Global’s portfolio will include 10 powerful consumer brands approaching $7 billion in total retail sales.”

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

Bonobos will be the third brand in Express’ portfolio, joining Express and UpWest. Express plans to leverage its strength in men’s and to address under-penetrated categories, and its strength in marketing to drive greater awareness and customer acquisition.

Express expects to achieve additional economies of scale across production and sourcing, logistics, real estate, technology and other areas of its existing and new businesses, the company said.

Express will enter into an exclusive long-term license agreement with multiple options for renewal, granting Express the right to use the intellectual property acquired by WHP Global for the operation of the Bonobos business in the U.S. in exchange for Express’ payment of a royalty fee to WHP Global.

The transaction is expected to close in the second quarter of 2023.