Guess, the apparel brand, is finalizing a $1.4 billion agreement with Authentic Brands, the brand’s owner. The deal was reached through collaboration among Guess co-founders Maurice and Paul Marciano and Guess CEO Carlos Alberini.
Shareholders will get $116.75 per share, which represents a 26% increase from the closing price on Tuesday.
The assessment of the deal involves Guess’s debt, as stated by the company. The stocks surged close to the offer price during trading in New York.
Authentic Brands will take control of Guess’s intellectual property while Guess will still oversee business operations.
Authentic Brands, led by CEO Jamie Salter, has amassed a collection of more than 50 fashion brands, celebrities, and media properties through acquisitions. These acquisitions involve the procurement of Dockers (from Levi Strauss), Champion Brands (from Hanesbrands), and Reebok (from Adidas). Salter has expressed intentions to potentially take the company public in 2026.
Guess, established in 1981 by the Marciano siblings with a focus on denim, set up a dedicated group in the current year to review an acquisition bid from WHP Global, another brand owner. Subsequently, Authentic Brands declined a competing offer, as per Bloomberg News.
Guess’s restructuring
Executives have reorganized retailer operations to boost efficiency and incorporate Rag & Bone, a fashion brand acquired with WHP Global in 2024. The restructuring involved shutting down US stores and focusing on direct consumer sales.
Guess reported higher than expected quarterly revenue in June, even though sales in Europe, Asia, and the Americas stores dropped.
Alberini anticipated that the growth would be fueled by the expansion of Rag & Bone and Guess’s denim collection.
