Wal-Mart in advanced talks to buy Bonobos: Recode
(Reuters) - Wal-Mart Stores Inc (WMT.N: Quote) is in advanced discussions to buy online men’s fashion retailer Bonobos Inc, Recode reported on Friday, citing sources.
Wal-Mart and Bonobos have agreed on a price and the deal is in final due diligence, Recode said. Nordstrom (JWN.N: Quote) is an investor in Bonobos.
The website said that the price of the deal could not be learned, but a retail business would likely fetch one to two times revenue. Bonobos has $100 million to $150 million in revenue and was valued at $300 million in 2014, the article said.(bit.ly/2nNA6nO)
The world's biggest retailer has been working aggressively to close the gap with rival Amazon.com Inc (AMZN.O: Quote) under the leadership of Chief Executive Doug McMillon and new e-commerce chief Marc Lore.
The deal, if announced, would become the fourth e-commerce acquisition by the retailer in less than a year.
Wal-Mart declined to comment while, Bonobos did not respond to the requests for comment.
Lore has overseen the acquisition of three other online retailers, shuffled management and made two-day shipping free on all online orders over $35, without any membership fees to compete with Amazon's popular Prime shipping program.
(Reporting by Divya Grover in Bengaluru; Editing by Alden Bentley and Cynthia Osterman)
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