Global apparel brand Guess? and US brand management firm WHP Global have announced an agreement to jointly acquire the New York-based fashion business rag & bone.
Guess? will contribute $56.5m to the deal and take over all operating assets of rag & bone, assuming related operating liabilities.
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Guess? and WHP Global will form a 50/50 joint venture (JV) to acquire rag & bone’s intellectual property (IP).
The JV will grant Guess? the exclusive right to use rag & bone’s IP to manufacture licensed products and sell them in specified territories.
rag & bone was established in 2002 and has a network of 34 stores in the US and two stores in the UK.
The brand also distributes products in high-end boutiques, department stores and through e-commerce platforms globally.
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By GlobalDataIn 2023, it reported unaudited annual revenue of $250m and adjusted earnings before interest, taxes, depreciation, and amortisation of $18m.
Post-acquisition, rag & bone will maintain its New York City base and will continue to function as an independent brand within the Guess? portfolio.
The focus will remain on delivering distinctive and timeless collections to its clientele.
The acquisition is poised to propel rag & bone’s global expansion, leveraging the extensive platforms, distribution networks, and worldwide licensee partnerships of Guess? and WHP Global.
Guess? CEO Carlos Alberini stated: “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. Guess? has an incredible platform with a strong global distribution network and outstanding licensee partners that will enable us to power the growth and expansion of the rag & bone business. We expect the transaction to deliver earnings per share accretion in the first year and strong value creation for our shareholders for years to come.”
The acquisition will close in the first quarter of the fiscal year 2025.
