WHP Seeks to Buy Guess?

Licensor/brand management firm WHP Global (New York) is seeking to acquire Guess? Inc. (Los Angeles) for $13 per share in cash. The non-binding proposal would involve acquire the outstanding stock of Guess?, except for the 43% percent of total held by co-founders Paul Marciano and Maurice Marciano and CEO Carlos Alberini.

According to published reports by Reuters and others, the company had a market value of about $500 million as of Friday (March 14), just before the WHP proposal was revealed. Its shares have risen in trading today (March 17).

WHP’s proposal would be financed through a combination of equity and third-party debt financing, as well as rollover or reinvestment by each of the major shareholders mentioned earlier. It assumes that here will be no material change to its strategic and operational positions.

In a news release, Guess? said it has formed a special committee of independent and disinterested directors to evaluate the proposal, with the assistance of outside financial and legal advisors, to determine the course of action that is in the best interest of the retailer and its shareholders.

There is no guarantee that any definitive offer will be made, that any agreement will be executed or that the proposed transaction in the proposal or any other transaction will be approved or completed, Guess? said. The retailer added it will not comment further on this matter until the committee has completed its evaluation of the proposal or until further disclosure is deemed appropriate. (Guess? shareholders do not need to take any action at this time.)

The two companies already have a connection; in April 2024, Guess? partnered with WHP to acquire the intellectual property and operating assets of New York-based fashion brand rag & bone, which has stores in the U.S. and the U.K., and is also available through boutiques, department stores and e-commerce.

Guess? designs, markets, distributes and licenses a lifestyle collection of contemporary apparel, denim, handbags, watches, eyewear, footwear and other related consumer products through 1057 owned stores in Europe, the Americas and Asia, as well as 541 additional retail stores worldwide. WHP operates13 brands, including Anne Klein, Bonobos, Express, Isaac Mizrahi, Joseph Abboud and Toys “R” Us.