Guess Inc.’s stock rose 3% on Friday after the clothing, footwear and accessories maker said it has agreed to acquire trendy New York-based fashion brand Rag & Bone, which had 2023 revenue of about $250 million. It’s the first acquisition made by Guess
GES,
+3.78%
in its 43-year history, said Paul Marciano, Guess co-founder and chief creative officer. Rag & Bone earned notoriety with its first ad campaign, which featured supermodel Kate Moss. “Rag & Bone is a brand I have always loved and respected,” Marciano said in a statement.
Under the terms of the deal, Guess will own all of the brand’s operating assets and will share its intellectual property with WHP Global, a New York-based investment company with a portfolio of consumer brands, via a 50/50 joint venture. Guess will contribute $56.5 million up front and be on the hook for up to $12.8 million in an incremental earnout, based on Rag & Bone reaching certain levels of sales and of earnings before interest, taxes, depreciation and amortization in fiscal 2024. Guess and the joint venture will enter into a licensing agreement that gives Guess the right to use Rag & Bone’s intellectual property to make products worldwide and sell licensed products in specified territories in …
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GES,
+3.78%
in its 43-year history, said Paul Marciano, Guess co-founder and chief creative officer. Rag & Bone earned notoriety with its first ad campaign, which featured supermodel Kate Moss. “Rag & Bone is a brand I have always loved and respected,” Marciano said in a statement.
Under the terms of the deal, Guess will own all of the brand’s operating assets and will share its intellectual property with WHP Global, a New York-based investment company with a portfolio of consumer brands, via a 50/50 joint venture. Guess will contribute $56.5 million up front and be on the hook for up to $12.8 million in an incremental earnout, based on Rag & Bone reaching certain levels of sales and of earnings before interest, taxes, depreciation and amortization in fiscal 2024. Guess and the joint venture will enter into a licensing agreement that gives Guess the right to use Rag & Bone’s intellectual property to make products worldwide and sell licensed products in specified territories in …nnDiscussion:nn” ai_name=”RocketNews AI: ” start_sentence=”Can I tell you more about this article?” text_input_placeholder=”Type ‘Yes'”]