Partnering With Management Firm WHP Global, Guess Makes its First Acquisition
Guess and brand management firm WHP Global have announced a definitive agreement to acquire New York fashion brand Rag & Bone.
Under this agreement, Guess will contribute $56.5 million to acquire Rag & Bone’s operating assets. Additionally, both Guess and WHP will equally share ownership of the brand’s intellectual property.
There’s also potential for additional earnout consideration, with Guess potentially responsible for up to $12.8 million, contingent on sales levels and EBITDA performance throughout the 2024 fiscal year.
Rag & Bone will continue its operations in New York, maintaining its independence as a fashion brand.
Carlos Alberinin, CEO of Guess, expressed enthusiasm about the acquisition, stating, “We are excited to add an iconic brand such as Rag & Bone to Guess, further diversifying our portfolio with complementary customer bases and price points. We look forward to partnering with WHP Global to build on Rag & Bone’s heritage.”
Alberinin highlighted Guess’s strong global distribution network and licensee partners, which will support Rag & Bone’s growth and expansion. He expects the transaction to deliver earnings per share accretion in the first year and create significant value for shareholders in the long term.
For Guess, this acquisition aligns with its long-term growth strategy to expand its business and enhance shareholder value. Meanwhile, it provides Rag & Bone with the infrastructure needed to accelerate its growth trajectory.
Currently, Rag & Bone operates 34 stores in the US and two in the UK, in addition to being available in various boutiques, department stores, and global e-commerce platforms.
Yehuda Shmidman, WHP Global Chairman and Chief Executive Officer, said, “The acquisition of rag & bone aligns us with powerful partners and grows WHP Global’s portfolio to over $7.5 billion in retail sales across 11 brands. We have great respect for rag & bone’s business and brand positioning, and look forward to building on its success as we capture the compelling opportunities ahead.”
Andrew Rosen, chairman of the Rag & Bone board, expressed excitement about the acquisition, stating, “Today marks the beginning of an exciting new chapter as Rag & Bone joins forces with a much larger international fashion company. It’s a great opportunity for our team to take the brand to the next level, blending our unique styles and respective expertise to create new possibilities for Rag & Bone on a global scale.”
