Never count Jamie Salter out.
The founder and chief executive officer of Authentic Brands Group swooped in and snatched the controlling interest in Guess from its rival WHP Global, which had been close to finalizing a deal to acquire the brand.
On Wednesday morning, Authentic said it will acquire a 51 percent stake in a newly formed entity that will own and license substantially all of Guess’ intellectual property and assume the majority of Guess’s product licensing agreements. The remaining 49 percent will be owned by Guess cofounders Maurice and Paul Marciano, Nicolai Marciano and Guess chief executive officer Carlos Alberini.
The acquisition will add about $6 billion in retail sales to Authentic’s coffers and marks the company’s second-largest brand acquisition after Reebok. It will bring the company’s total annual retail sales to $38 billion globally.
Under the terms of the deal, Guess and its subsidiaries will be taken private and be wholly owned by the current management team. The operating company will continue under its existing leadership and structure, Authentic said.
“Guess is a powerhouse brand that has defined style and culture for over 40 years,” said Salter. “We have tremendous respect for the Marcianos and their team, who have built an innovative, heritage-rich brand with incredible global reach and an established ecosystem of partners. We are excited to build on this legacy in partnership with them as Guess enters its next chapter within our platform.”
Authentic said it will expand the Guess business into new categories and territories, and reactivate its archives.
“Guess’ international scale and market strength create a runway to accelerate Authentic’s growth around the world,” said Matt Maddox, president of Authentic. “This acquisition expands our presence in existing markets, opens doors to new ones and builds on a brand platform with a proven record of success.”
Founded in 1981 in Los Angeles, Guess became famous for its slim, stonewashed jeans and marketing campaigns overseen by Paul Marciano that featured “Guess Girls,” who in the past have included the likes of Claudia Schiffer and Anna Nicole Smith. Today it operates in about 100 countries through a global retail and licensing network that includes 1,600 stores globally, of which over 1,000 are directly managed.
The deal, terms of which were not disclosed, is expected to close in the fourth quarter.
WHP Global submitted a non-binding $13 a share bid to acquire Guess in March.