Guess?, Inc. Joins Forces with WHP Global in the Acquisition of rag & bone

Guess?, Inc. (NYSE: GES) and global brand management firm WHP Global have officially declared their intention to acquire the New York-based fashion brand rag & bone in a definitive agreement. This strategic move involves Guess? acquiring all of rag & bone’s operating assets, while both Guess? and WHP Global will jointly possess the intellectual property rights of the brand.

Established in New York in 2002, rag & bone has emerged as a key player in American fashion, renowned for its authentic style that seamlessly blends traditional craftsmanship with contemporary cultural influences. The brand has become synonymous with high-quality clothing for men and women, characterized by an innovative yet understated New York aesthetic and a notable expertise in denim.

Presently, rag & bone operates 34 stores in the U.S. and two in the U.K., with a global presence in high-end boutiques, department stores, and e-commerce. In the unaudited financials for 2023, rag & bone reported an annual revenue of approximately $250 million and adjusted EBITDA of $18 million.

Guess? CEO Carlos Alberini expressed excitement about adding the iconic rag & bone brand to their portfolio, citing the opportunity to diversify with complementary customer bases and price points. Alberini anticipates leveraging Guess?’s global distribution network and licensee partnerships to fuel rag & bone’s growth and expansion. The transaction is expected to yield earnings per share accretion in the first year, delivering long-term value to shareholders.

Guess? Co-Founder and Chief Creative Officer, Paul Marciano, conveyed his admiration for rag & bone’s commitment to quality and authenticity. This acquisition marks a significant milestone in Guess?’s 43-year history, and Marciano looks forward to collaborating with rag & bone’s team to facilitate international product and market expansion.

WHP Global Chairman and CEO, Yehuda Shmidman, highlighted the alignment of powerful partners and the growth of WHP Global’s portfolio to over $7.5 billion in retail sales across 11 brands. The acquisition positions WHP Global strategically, capitalizing on rag & bone’s business and brand positioning.

rag & bone’s Chairman of the Board, Andrew Rosen, expressed excitement about the new relationship with Guess? and WHP Global, envisioning it as a transformative chapter for the brand. As part of the Guess? portfolio, rag & bone will continue to operate independently, headquartered in New York City, focusing on delivering unique and timeless collections to its customers.

Key highlights of the transaction include a strong partnership with WHP Global, leveraging Guess?’s infrastructure to accelerate rag & bone’s growth, and expanding Guess?’s global lifestyle brand portfolio. The move aligns with Guess?’s commitment to generating value for shareholders through efficient capital allocation, with expectations of accretive earnings per share in the first year.

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