Guess Inc. and global brand management firm WHP Global announced on Friday a definitive agreement to acquire New York-based fashion brand Rag & Bone.
As part of the acquisition, Guess will take the reins of Rag & Bone’s operational assets, while jointly owning its intellectual property with WHP Global. Guess will contribute $56.5 million to acquire Rag & Bone, with the potential for additional earnout. The deal is expected to close during the first quarter of Guess’ 2025 fiscal year.
Under the terms of the agreement, Rag & Bone will remain headquartered in New York City, operating as an independent fashion brand within the Guess portfolio.
“I am thrilled about this new relationship with Guess and WHP Global. Today marks the beginning of an exciting new chapter as Rag & Bone joins forces with a much larger international fashion company,” said Andrew Rosen, chairman of the board at Rag & Bone.
“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.”
Established in 2002 in the heart of New York City, Rag & Bone has cemented itself as a leader in American fashion, well-known for its fusion of traditional craftsmanship with contemporary cultural influences. The brand is recognized for its authentic style, particularly in denim, offering clothing that embodies a New York aesthetic.
With 34 stores across the U.S. and two in the U.K., along with a strong presence in boutiques, department stores, and e-commerce channels globally, Rag & Bone boasts an unaudited annual revenue of approximately $250 million and adjusted EBITDA of $18 million for 2023.
The acquisition is expected to enable Rag & Bone to maximize global expansion by benefiting from both Guess and WHP Global’s platforms and distribution and licensee partners all over the world. Rag & Bone is also expected to benefit from Guess ability to support the growth of its product offerings, expand the brand’s reach into new markets and drive operational efficiencies.
“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,” said Paul Marciano, Guess co-founder and chief creative officer.
“This acquisition is the first one in the 43-year history of Guess, and I am thrilled to welcome Rag & Bone to our family. I look forward to working with Andrew Rosen and the talented team at Rag & Bone to pursue the brand’s product and market expansion internationally.”
Yehuda Shmidman, WHP global chairman and chief executive officer added: “The acquisition of Rag & Bone aligns us with powerful partners and grows WHP Global’s portfolio to over $7.5 billion in retail sales across 11 brands. We have great respect for Rag & Bone’s business and brand positioning, and look forward to building on its success as we capture the compelling opportunities ahead.”
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