Deal Positions Walmart for Expanded e-Commerce Growth and Customer
BENTONVILLE, Ark. & HOBOKEN, N.J.–(BUSINESS WIRE)–Wal-Mart Stores, Inc. and Jet.com, Inc. today announced they have
entered into a definitive agreement for Walmart to acquire Jet for
approximately $3 billion in cash, a portion of which will be paid
over time. Additionally, $300 million of Walmart shares will be
paid over time as part of the transaction.
The acquisition will build on and complement the significant foundation
already in place to serve customers across the Walmart app, site and
stores and position the company for even faster e-commerce growth in the
future by expanding customer reach and adding new capabilities. The
acquisition, which is subject to regulatory approval, has been approved
by the Boards of Directors for both companies and is expected to close
this calendar year.
“We’re looking for ways to lower prices, broaden our assortment and
offer the simplest, easiest shopping experience because that’s what our
customers want,” said Doug McMillon, president and CEO, Wal-Mart Stores,
Inc. “We believe the acquisition of Jet accelerates our progress across
these priorities. Walmart.com will grow faster, the seamless shopping
experience we’re pursuing will happen quicker, and we’ll enable the Jet
brand to be even more successful in a shorter period of time. Our
customers will win. It’s another jolt of entrepreneurial spirit being
injected into Walmart.”
Jet is among the fastest growing and most innovative e-commerce
companies in the U.S., with an experienced leadership team led by
co-founder and CEO Marc Lore, together with fellow co-founders Mike
Hanrahan and Nate Faust. Among other things, Lore previously
co-founded and led Quidsi, the parent company of e-commerce sites
Diapers.com, Soap.com and Wag.com. With the help of Faust and Hanrahan,
Lore grew Quidsi into a prominent and successful business that was
ultimately sold. The acquisition of Jet will infuse Walmart with fresh
ideas and expertise, as well as an attractive brand with proven appeal,
especially with Millennials, the first generation of true digital
natives. Among other things, Jet has:
Demonstrated ability to scale with speed, reaching $1 billion in
run-rate Gross Merchandise Value (GMV) and offering 12 million SKUs in
its first year.
A growing customer base of urban and millennial customers with more
than 400,000 new shoppers added monthly and an average of 25,000 daily
Best-in-class technology that rewards customers in real time with
savings on items that are bought and shipped together, thereby
reducing the supply-chain and logistics costs often buried in the
price of goods.
A select group of more than 2,400 retailer and brand partners tailored
to create an attractive and distinctive assortment for consumers.
“We started Jet with the vision of creating a new shopping experience,”
Lore said. “Today, I couldn’t be more excited that we will be joining
with Walmart to help fuel the realization of that vision. The
combination of Walmart’s retail expertise, purchasing scale, sourcing
capabilities, distribution footprint, and digital assets – together with
the team, technology and business we have built here at Jet – will allow
us to deliver more value to customers.”
Walmart and Jet will maintain distinct brands, with Walmart.com focusing
on delivering the company’s Everyday Low Price strategy, while Jet will
continue to provide a unique and differentiated customer experience with
curated assortment. Walmart and Jet will leverage innovative technology
solutions from both companies to develop new offerings to help customers
save time and money.
Walmart believes it will obtain the necessary regulatory approvals to
complete the transaction and both companies intend to make all necessary
filings in the near future.
As a reminder, Walmart will release its second quarter earnings on
Thursday, Aug. 18, 2016.
Financial advisors to Walmart on this transaction were Allen & Company
and J.P. Morgan Securities LLC.
Wal-Mart Stores, Inc. (NYSE: WMT) helps people around the world save
money and live better – anytime and anywhere – in retail stores, online,
and through their mobile devices. Each week, nearly 260 million
customers and members visit our 11,527 stores under 63 banners in 28
countries and e-commerce websites in 11 countries. With fiscal year 2016
revenue of $482 billion, Walmart employs more than 2.3 million
associates worldwide. Walmart continues to be a leader in
sustainability, corporate philanthropy and employment opportunity.
Additional information about Walmart can be found by visiting http://corporate.walmart.com
on Facebook at http://facebook.com/walmart
and on Twitter at http://twitter.com/walmart.
Online merchandise sales are available at http://www.walmart.com
Forward Looking Statements
The statements in this press release regarding the impact of this
acquisition and the anticipated closing date are believed to be
“forward-looking statements” within the meaning of the Private
Securities Litigation Reform Act of 1995, as amended (the “Act”), that
are intended to enjoy the protection of the safe harbor for
forward-looking statements provided by the Act. These forward-looking
statements are subject to certain risks, uncertainties and other factors.
Wal-Mart Stores, Inc.