The American fashion and media group Authentic Brands Group LLC (ABG) secures the next well-known fashion brand. On Wednesday, the company announced that it had signed a binding agreement to take control of Guess’s intellectual property rights.
The takeover is “another important milestone” for the Authentic Brands Group, the group said. With global annual brand sales of around six billion US dollars, Guess becomes the second largest brand in the extensive portfolio of the group of companies, which also includes labels such as Reebok, Ted Baker and Champion.
A possible takeover of Guess had been in the room for months. In March, the US group WHP Global LLC made a first, non-binding offer. A few weeks later, media reports had also been speculated about a possible interest of the Authentic Brands Group.
Guess disappears from the stock exchange
The agreement that has now been concluded stipulates that the Authentic Brands Group acquires a 51 percent participation in a new company that will have and licensing almost all intellectual property rights. In addition, a large part of the existing license agreements from Guess are to be transferred to this company. The remaining 49 percent of the shares take over the Guess founders Maurice and Paul Marciano as well as Nicolai Marciano and Carlos Alberini, the CEO of the fashion company.
The company that leads the operational business of Guess goes to the current management of the company and is taken from the stock exchange. This company will “preserve its existing leadership and structure, so that the strong teams and the global platform that are behind the success of the company will be preserved,” says a message.
As part of the plan, the previous shareholders should receive $ 16.75 in the inside of Guess. This corresponds to a surcharge of around 73 percent compared to the share price of March 14, the last trading day before a first non -binding takeover offer for Guess had been received. The total value of Guess is thus estimated at $ 1.4 billion.
The Authentic Brands Group wants to expand into new markets and product categories with the Guess brand
The transaction also requires the usual competition law permits and a majority consent of the existing shareholders: inside of Guess. According to the current status, it is to be completed in the fourth quarter of the current financial year 2025/26.
Jamie Salter, the founder, Chairman and CEO of Authentic Brands Group, explained the background of the now agreed takeover. “Guess is a strong brand that has shaped style and culture for over 40 years,” he said in a statement. “We have great respect for the Marcianos and her team, which have built up an innovative, traditional brand with an incredible global range and an established ecosystem of partners. We look forward to building up on this heritage together with you, while Guess starts his next chapter with our platform.”
The Authentic Brands Group plans to use its existing global network in order to promote the expansion of Guess into new product categories and market regions. At the same time, the “legendary archive” of the brand founded in 1981 should be revived, according to a message.