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Rumors are circulating within the financial and retail sectors regarding the potential acquisition of the American fashion brand Guess.
Reports indicate that the company, founded in 1981 by the Marciano family, has attracted preliminary interest from several unnamed suitors, the bid’s winner is Authentic Brands Group. Under the terms of the deal, the company’s co-founders Maurice and Paul Marciano, as well as chief executive Carlos Alberini, will own 49% of its intellectual property. Authentic Brands Group will own 51%.
The speculation emerges as Guess executes a strategy to strengthen its global retail presence, following a period of financial performance showing resilience in key international markets.
The deal agreed required approval from regulators and the company’s shareholders, with the board evaluating any deal against the brand’s long-term strategic future. However, with a price tag at $1.4 billion with shares right around $16 each, that proved to be too enticing. Would you sale your fashion company after 40 years?
“We look forward to building on the significant progress we have made to strengthen our organization,” Alberini said in a statement. “As a private company benefiting from the perspectives of a globally recognized licensing partner, Guess? will have enhanced flexibility to navigate today’s complex operating environment.”
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