Guess?, Inc. and WHP Global Complete Acquisition of rag & bone

Guess? Announces $50 Million Expansion of its Existing Asset-Based Revolving Credit Facility.

Los Angeles-based Guess?, Inc. (NYSE: GES) and global brand management firm WHP Global have announced that they have completed the previously announced acquisition of New York-based fashion brand rag & bone.

Under the terms of the transaction, Guess? has contributed $57.1 million towards the purchase of rag & bone in addition to contributions from WHP Global. As a result, Guess? now owns all of the rag & bone operating assets, and Guess? and WHP Global jointly own the rag & bone intellectual property.

In connection with the closing of the acquisition, Guess? has entered into an agreement with the lenders of its existing $150 million asset-based revolving credit facility to increase the borrowing capacity under the facility by $50 million to a total of $200 million.

Currently, rag & bone the brand directly operates 34 stores in the U.S. and two stores in the U.K. and is also available in high-end boutiques, department stores and through e-commerce globally. In 2023, rag & bone generated unaudited annual revenue of approximately $250 million and adjusted EBITDA of $18 million.

Carlos Alberini, Guess? CEO, 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.”

Paul Marciano, Guess? co-founder and chief creative officer, added, “rag & bone is a brand I have always loved and respected. 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. 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.”