Guess and WHP Global To Acquire Rag & Bone
Guess will purchase the brand’s operating assets, while both companies will each own 50% of Rag & Bone’s intellectual property.
Guess Inc. and brand management company WHP Global have cut a deal to acquire Rag & Bone. In the contract, Guess will purchase all of the New York brand’s operating assets, and a separate 50-50 joint venture will see Guess and WHP own the label’s intellectual property.
“I am thrilled about this new relationship with Guess? and WHP Global,” Andrew Rosen, chairman of the board at Rag & Bone, said in a statement. “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.”
Figures associated with the full acquisition were not reported. However, Guess’ bill adds up to $56.5 million USD, with an additional earn out that could reach as high as $12.8 million USD, according to WWD. The figure values Rag & Bone at a figure lower than its sales last year, which tallied to $250 million USD.
“Rag & Bone is a brand I have always loved and respected,” Paul Marciano, co-founder and chief creative officer at Guess, said in a statement. “It is a brand well known for its pre-eminence in American fashion that over the years has stayed true to its roots and founding values, with an unwavering commitment to quality and authenticity.”
“This acquisition is the first one in the 43-year history of Guess, and I am thrilled to welcome Rag & Bone to our family,” he added. “I look forward to working with Andrew Rosen and the talented team at Rag & Bone to pursue the brand’s product and market expansion internationally.”
The acquisition is forecasted to close in the first quarter of Guess’ 2025 fiscal year.
