Dive Brief:
- Authentic Brands Group has acquired a majority stake in Guess’ intellectual property for $16.75 per share, according to financial filings Friday.
- Existing Guess shareholders – Maurice Marciano, Paul Marciano, Nicolai Marciano and Carlos Alberini and various financial affiliates – now own 49% of the brand’s IP. Guess’ current management also now owns 100% of the operating company and will continue to run that business, maintaining operations in Switzerland.
- The Guess board in August approved the deal, which with debt amounts to about $1.4 billion. With the transaction now closed, Guess is no longer a public company.
Dive Insight:
Guess has been contemplating a sale since last March, when WHP Global offered $13 per share. With this ostensibly superior deal, Authentic adds to its vast portfolio of brand IP while the brand’s major shareholders are left with the trickier aspects of running the enterprise.
Forever 21’s U.S. operator ran into trouble and declared bankruptcy last year; that brand IP is also owned by Authentic, although Authentic CEO Jamie Salter has expressed regret about acquiring the Forever 21 brand.
In a statement Friday, Salter said that Guess was compelling thanks in part to “its exceptional leadership and iconic heritage to its vast network of licensing partners around the world.”
“Guess? is one of the rare global brands that has built extraordinary awareness and continued to evolve while staying true to its DNA,” he said. “The brand’s legacy and the perseverance behind it are a true credit to Paul, Maurice and the entire Guess? team, and we’re honored to partner with them to accelerate this next phase of growth.”
Part of that legacy includes allegations of sexual assault and harassment, which four years ago led an activist investor to call for the ouster of co-founders Paul and Maurice Marciano. Before that, in 2018, Paul Marciano stepped down as executive chairman amid sexual assault allegations and reports the company had settled with several accusers, though he hung on to his role as creative chief and his place on the board.
Last year, Guess closed underperforming stores in North America. Rag & Bone has bolstered the company’s top line since Guess acquired it in 2024. In its most recent quarter, Guess product sales rose 7.8% to over $760 million; with royalties, net revenue rose 7.2% to more than $791 million.
In addition to Guess and Forever 21, Authentic also owns the IP of dozens of other brands, including Reebok, Champion, Sports Illustrated, Aéropostale, Nautica, Eddie Bauer, Lucky Brand, Nine West, Brooks Brothers, Juicy Couture, Vince Camuto, Dockers, Ted Baker, Vince and Barneys New York.
