WHP Global plans acquisition of Guess

The US fashion company Guess Inc. could soon have a new majority owner. On Monday, the apparel retailer announced it had received a non-binding acquisition proposal from the US brand management firm WHP Global LLC.

The prospective buyer, whose portfolio already includes brands like Vera Wang, G-Star, and Lotto, is offering US$13.00 (11.90 euros) per share for a majority of Guess’s outstanding shares through its subsidiary WHP Investments LLC. Given the substantial premium over the recent share price, Guess’s stock surged by more than 25 percent after the offer was announced.

The offer reportedly excludes shares currently held by Guess co-founder Maurice Marciano, Chief Creative Officer Paul Marciano, and CEO Carlos Alberini. Guess stated that no changes in management or business strategy are planned, even if the acquisition proceeds.

Guess Currently Reviewing the Non-Binding Offer

The company stated that a special committee has been formed to review the offer, in consultation with external financial and legal advisors. The committee comprises independent board members who have no personal interest in a potential transaction. However, Guess emphasized that it is not yet certain whether a binding offer will be submitted or, if submitted, whether it will be implemented.

Guess and WHP Global already have an existing business partnership. Last year, the two companies jointly acquired the fashion brand Rag & Bone. A joint venture between the two companies acquired the intellectual property rights, while Guess took over the label’s operations and now manages its stores in the US and UK.