Overview

• Authentic Brands Group will buy a 51 percent stake in a new entity that will own and license substantially all of Guess’s intellectual property and assume most product licensing agreements.
• Co-founders Maurice and Paul Marciano, Nicolai Marciano and CEO Carlos Alberini will hold the remaining 49 percent and will own the operating company, which continues under existing leadership.
• The transaction values Guess at about $1.4 billion including debt, pays shareholders $16.75 in cash per share at a 26 percent premium, and sent the stock up roughly 25 percent.
• Authentic says the acquisition will add about $6 billion in retail sales to its portfolio, bringing its total annual retail sales to $38 billion globally.
• The agreement supersedes WHP Global’s earlier non-binding $13-per-share bid that had progressed toward a potential deal.