Famous U.S. clothing and accessories brand Guess?, Inc. will go private in a $1.4 billion deal with brand management company Authentic Brands Group. As part of the transaction, Guess shares will cease trading on the stock exchange.
Outline of the deal
Guess has announced it reached an agreement to merge with Authentic Brands Group in a deal that values the U.S. fashion house at about $1.4 billion.
Current shareholders will receive $16.75 per share in cash, representing a 73% premium to the unaffected closing price on March 14, when news of a potential buyout first surfaced. Yesterday, August 21, after the deal was confirmed, Guess shares jumped 26% to $16.85 apiece, giving the company a market capitalization of $876.5 million.
Authentic Brands, which owns Reebok, Quiksilver, and Champion, will acquire 51% of Guess’s intellectual property. The remaining 49% will be held by existing shareholders including cofounders Maurice and Paul Marciano and CEO Carlos Alberini. The current management will continue to run all Guess operations.
The transaction is expected to close in the fourth quarter of Guess' 2026 fiscal year, subject to shareholder and regulatory approvals.
About the companies
Guess, founded in 1981 by the Marciano brothers, started as a denim label and grew into a global fashion brand. For the fiscal year ending February 1, 2025, GAAP net income dropped 70% year over year to $60.4 million, compared with $198.2 million a year earlier.
In March, Guess received a buyout proposal from WHP Global at $13 per share, which was later topped by Authentic Brands’ competing offer. In June, Guess reported quarterly earnings ahead of analyst expectations, though same-store sales declined in Europe, Asia, and the Americas.
Authentic Brands Group manages a portfolio of more than 50 well-known consumer brands. Notable acquisitions include Reebok from Adidas, Dockers from Levi Strauss & Co., and Champion Brands from Hanesbrands. In 2024, CEO Jamie Salter said he was considering taking the company public in 2026.
The AI translation of this story was reviewed by a human editor.
