Walmart Inc (NYSE:WMT), the largest US retailer, is selling menswear brand Bonobos to Express Inc (NYSE:EXPR) and WHP Global for $75 million.
WHP Global, which owns fashion brands such as Toys “R” Us, Anne Klein and Joseph Abboud, partnered with Express earlier this year for a stake in the apparel retailer. It is the first joint acquisition since it took 7.4%.
WHP Global will acquire the Bonobos brand for a purchase price of $50 million, while Express will acquire operating assets and assume liabilities related to the Bonobos business for $25 million, the companies said .
Shares of Express (NYSE:EXPR) surged nearly 21.62% to 82 cents in after-hours trading on Thursday following the announcement . On the other hand, Walmart (NYSE:WMT) was down 0.21% to $149.18.
Acquired by Walmart for $310 million in June 2017, Bonobos sells menswear online, from suits and pants to swimwear and accessories.
According to web analytics firm Similarweb, Bonobos has averaged 1.7 million visitors to its website over the past three months, 56.8% of whom are male shoppers.
In March, Express reported that its fourth-quarter net sales fell 14% to $514.3 million due to slowing demand, with its women’s apparel business hit harder.
Meanwhile, the retailer’s men’s apparel division posted a record year, increasing the company’s market share in categories such as denim, knitwear and chinos.
The Bonobos transaction is expected to close in the second quarter, after which WHP and Express will enter into an exclusive licensing agreement. Express will have the right to use the intellectual property acquired by WHP to run the Bonobos business.