WHP Global closes Bonobos acquisition, EXPR to operate US business
WHP Global has announced the closing of a joint acquisition of the Bonobos brand in a strategic partnership with Express, Inc (EXPR).
As part of the transaction, WHP and EXPR have agreed that the latter will gain the right to use the intellectual property for the operation of Bonobos’ US business in a long-term licensing agreement.
In a release, Yehuda Shmidman, chairman and CEO of WHP Global, said: "The acquisition of Bonobos marks an important milestone in our partnership with EXPR and adds an innovative DTC men's fashion brand to the WHP Global portfolio.”
WHP first announced its intention to acquire Bonobos from its previous owner Walmart in April 2023, combining with EXPR for a 75 million dollar takeover.
The decision came as WHP looked to enhance its position in the fashion industry, while EXPR set out on upping shareholder value by achieving profitable growth.
The announcement of the acquisition’s closing fell alongside EXPR’s financial report for 2023’s first quarter, where it reported a net sales decrease of 15 percent, from 450.8 million dollars to 383.3 million dollars.
Its gross margin also fell from 29.2 percent of net sales last year to 16.6 percent.
The company’s CEO Tim Baxter attributed the fall to lower consumer spending and increased price sensitivity, noting that EXPR would take “corrective action” to address imbalances in its womenswear assortment.