American label Guess and brand management firm WHP Global have come together on a definitive agreement to acquire New York fashion brand Rag & Bone.
As part of the agreement, Guess, which will contribute 56.5 million dollars, will acquire the Rag & Bone operating assets, while both Guess and WHP will jointly and equally own the brand’s intellectual property.
There is a further potential for an incremental earnout consideration of which Guess will be responsible for a maximum of 12.8 million dollars, based on sales levels and EBITDA performance over FY24.
Rag & Bone will continue on in its New York base, with its team to operate as an independent fashion brand.
In a release, Carlos Alberini, the CEO of Guess, for which this will be the first acquisition, said: “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.”
Rag & Bone becomes first Guess acquisition
For Guess, the move comes as part of its long-term growth strategy, through which it looks to power a bigger business and generate stronger shareholder value, while providing Rag & Bone with the infrastructure to accelerate its own growth.
Rag & Bone currently operates 34 stores in the US and two in the UK, while additionally being available in a number of boutiques, department stores and global e-commerce platforms.
Speaking on the acquisition, Andrew Rosen, chairman of the Rag & Bone board, said: “I am thrilled about this new relationship with Guess and WHP Global. Today marks the beginning of an exciting new chapter as Rag & Bone joins forces with a much larger international fashion company.
“It’s a great opportunity for our team to take the brand to the next level, blending our unique styles and respective expertise to create new possibilities for Rag & Bone on a global scale.”
