Apparel retailer, Express, and global brand management firm, WHP Global, have announced an agreement to acquire menswear brand, Bonobos, from Walmart. This is the first acquisition to be made jointly by WHP Global and EXPR since finalizing their strategic partnership earlier this year. 

Bonobos was founded in 2007 and acquired by Walmart in 2017. 

“Our strategic roadmap to transform EXPR to create shareholder value includes achieving profitable growth in our core Express business – which is our first priority – optimizing our omnichannel platform and accelerating our growth and profitability through our partnership with WHP Global,” says Tim Baxter, chief executive officer, EXPR. “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.” 

Current chief executive officer, 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. 

“This is an exciting moment for Bonobos as we embark on the next phase of our growth,” says Hutchison. “Born a digitally native vertical brand, we plan to build on our strength in e-commerce and customer loyalty, leverage EXPR’s expertise in omnichannel retailing and scale through WHP Global’s partnerships in licensing and distribution.” 

Related:WHP Global Broadens its Apparel Portfolio with the Acquisition of the Isaac Mizrahi Brand

Concurrent with the closing of the transaction, WHP Global and EXPR will enter into an exclusive long-term license agreement with multiple renewal options granting EXPR 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 EXPR’s payment of a royalty fee to WHP Global. 

The transaction is expected to close in EXPR’s second fiscal quarter of 2023.