The US fashion group Guess Inc. is planning the first acquisition in its 43-year history. Together with the brand management company WHP Global, he wants to acquire the Rag & Bone label.
As part of the agreement announced on Friday, Guess will take over all of the brand’s operational activities, it said in a statement. The intellectual property rights of Rag & Bone, however, go to a specially founded joint venture in which Guess and WHP Global each hold a half stake.
According to Guess, it is initially contributing 56.5 million US dollars (52.6 million euros) to the transactions, which are to be completed by the end of July. In addition, performance-related costs could be up to $12.8 million, the company said.
In addition, as a licensing partner of the new joint venture, Guess will pay appropriate fees for the use of Rag & Bone’s intellectual property rights to produce the label’s products and offer them in certain market regions.
Rag & Bone will continue to operate independently under the Guess umbrella
With the takeover, Guess and WHP Global want to advance the global expansion of Rag & Bone. The brand will continue to operate independently under the Guess umbrella in the future, but can use the global networks and capacities of the two new owners, according to a statement.
According to Guess, the label currently has 34 stores in the USA and two in Great Britain. According to preliminary figures, Rag & Bone generated sales of approximately $250 million in the 2023 fiscal year. Earnings before interest, taxes, depreciation and amortization (EBITDA) adjusted for special items amounted to $18 million.