Guess Inc. To Go Private In $1.4b Deal With Authentic Brands And Marciano Founders
In this article (3)
Guess, a renowned fashion and lifestyle brand, is preparing to transition into a privately-held company following a US$1.4 billion pact with Authentic Brands Group, major shareholders, and co-founders Maurice and Paul Marciano, Nicolai Marciano, as well as CEO Carlos Alberini.
Details of the Agreement
According to the terms of this agreement, Authentic Brands Group is slated to acquire the majority stake, 51%, of Guess’s intellectual property. Meanwhile, the Marciano family and their affiliated entities will retain a minority stake of 49%.
Despite the shift in ownership, Guess’s management team will continue to operate the business and retain full ownership of the operating company. Shareholders who are not part of the founding group are set to receive a cash payment of $16.75 per share.
The Future of Guess
Jamie Salter, the founder, chairman, and CEO of Authentic Brands, expressed his excitement and optimism about the impending partnership with the Marcianos. He acknowledged Guess as a dominant brand that has significantly influenced style and culture for over four decades. Salter is eager to collaborate with the Marciano family as Guess embarks on this new phase, building upon its enduring legacy.
Questions & Answers
What will be the distribution of Guess’s intellectual property ownership following the deal?
Following the agreement, Authentic Brands Group will own 51% of Guess’s intellectual property, while the Marciano family and their affiliated entities will retain a 49% stake.
What will happen to shareholders who are not part of the founding group?
Shareholders who are not part of the founding group will receive a cash payment of $16.75 per share as a result of the agreement.
Who will continue to manage Guess after the deal?
Despite the change in ownership, Guess’s current management team will continue to run the business, maintaining full ownership of the operating company.