Walmart Announces Purchase of Bonobos for $310 Million in Cash
Walmart is buying internet retailer Bonobos for $310 million in cash.
Bonobos launched as a menswear brand online in 2007, expanding into brick and mortar retail in 2011 and partnering with Nordstrom in 2012. Bonobos Founder and CEO Andy Dunn will join Walmart to oversee the company's online consumer brands.
"Adding innovators like Andy will continue to help us shape the future of Walmart, and the future of retail." Marc Lore, president and CEO of Walmart's U.S. ecommerce division said in a statement.
Walmart (WMT) said Bonobos products will be offered on its Jet.com unit and potentially other company brands in the future.
As consumers trend toward more online shopping, cutting into profits for traditional retailers, WalMart has scooped up ecommerce brands to compete with online retail giants like Amazon.
In March, Walmart bought online retailer ModCloth for an undisclosed amount. The company acquired Jet.com, widely seen as a potential Amazon challenger, with its same-day delivery capabilities to a younger, higher-income customer bae, for $3 billion in cash and another $300 million in stock last year.
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