Big box retailer Walmart is looking to acquire US-based men’s fashion e-commerce company Bonobos in a deal that would allow retail chains Nordstrom and Coppel to exit, Recode has reported.
Walmart is likely to pay about $300m for Bonobos, a person familiar with the situation told Bloomberg, adding that talks between the companies are in the final stages.
Bonobos specialised in chinos when it was founded in 2007 but has since grown its clothing range to include suits, shirts, shorts and golf apparel. It generates between $100m and $150m in annual revenue, according to Recode.
The company has raised approximately $127m in funding, Nordstrom having led its $16.4m series B round in 2012, investing alongside venture capital firms Accel and Lightspeed Venture Partners.
Nordstrom, Accel and Lightspeed returned for a $30m round in 2013 that included Mousse Partners, Glynn Capital Management, Forerunner Ventures and Felicis Ventures.
All the series C participants came back for a $55m series D round the following year led by Coppel Capital, a subsidiary of retailer Coppel, which valued Bonobos at $300m according to Pitchbook. Bonobos had reportedly entered talks in November 2016 to raise money at a $500m valuation.
The deal would be one of several acquisitions Walmart has made to boost its e-commerce capabilities over the past year, most notably its $3.3bn purchase of e-commerce platform Jet.com in August 2016.
The corporate also bought outdoor clothing producer Moosejaw for $51m in February this year, and women’s fashion specialist ModCloth for an undisclosed amount last month. Both companies predominantly sell their goods online.
– Image courtesy of Bonobos