Guess?, Inc. (GES) recently made an announcement about its definitive agreement to purchase the New York-based fashion label, rag & bone. The acquisition is being facilitated by WHP Global, a worldwide brand management company.
While the precise financial specifics of the agreement remain confidential, Guess? is set to acquire all of rag & bone's operational assets and assume responsibility for the company's operational debts related to the rag & bone business.
Additionally, Guess? and WHP Global will join forces to establish an equally divided joint venture that will acquire the intellectual property (IP) rights of rag & bone. What follows next is a licensing agreement where Guess? will receive exclusive rights to use the rag & bone IP. This gives Guess? exclusive access to produce goods licensed under rag & bone globally and the ability to sell these items in specified regions. In exchange, Guess? will pay a royalty fee.
The acquisition process is projected to be completed during the first quarter of Guess?'s 2025 fiscal year.
