Guess Inc. and brand management firm WHP Global are teaming up to buy Rag & Bone. Under terms of the deal, Guess will buy all of the operating assets of the New York-based jeans brand. Separately, a 50-50 joint venture controlled by Guess and WHP will acquire the brand’s intellectual property.
Paul Marciano, co-founder and chief creative officer, of Guess, said: “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.
Rosen, a fashion and investment veteran who is chairman of Rag & Bone, said: “Today marks the beginning of an exciting new chapter as Rag & Bone joins forces with a much larger international fashion company. It’s a great opportunity for our team to take the brand to the next level, blending our unique styles and respective expertise to create new possibilities for Rag & Bone on a global scale.”
The sale is the latest major development at the brand in the last eight months: Marcus Wainwright, who cofounded the business with David Neville in 2002, stepped down as chief brand officer last July. Rag & Bone has 34 stores in the U.S., two doors in the U.K. and numerous wholesale accounts.
Sales last year tallied about $250 million with adjusted earnings before interest, taxes, depreciation and amortization of $18 million. Guess will contribute $56.5 million to the deal plus an earn out that could go as high as $12.8 million.
Carlos Alberini, CEO of Guess, said the transaction would diversify the company’s portfolio with complementary price points. “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. ”
Rag & Bone SS 2024
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