Brands Authentic purchases Guess for a staggering 1.4 billion dollars.
In a significant move for the fashion industry, American clothing company Guess has announced it will be privatized in a deal with Authentic Brands Group (ABG). The deal, which values Guess at approximately $1.4 billion, including debt, will see the company delist from the New York Stock Exchange.
The agreement, expected to close in the fourth quarter of the fiscal year 2026, comes after ABG announced its intention to bid for Guess in April. Current shareholders will retain the rest of the company, receiving €16.75 per share as part of the deal, representing a 26% premium over Tuesday's close.
The deal is a joint venture between ABG, Simon Property, Brookfield, and Shein. ABG, a US-based fashion and media company, acquires and manages intellectual property rights of prominent brands. With over 40 years of style and cultural influence, Guess will join a portfolio that includes Champion, Reebok, and Forever 21, among others.
Despite the revenue increase, Guess's profit plummeted to €60.4 million for the previous year, a threefold decrease. The U.S. fashion company recorded revenues of €2.870 billion for its last full fiscal year, marking a 7.7% increase from the previous year.
The deal adds to the ongoing list of M&A in the fashion world, including the privatization of Skechers by 3G Capital, the acquisition of Foot Locker by Dick's Sporting Goods, and the purchase of Dockers by Authentic Brands from Levi Strauss.
Authentic Brands, along with co-founders Maurice and Paul Marciano and CEO Carlos Alberini, have reached an agreement to acquire a 51% stake in Guess. The deal is expected to expand Guess into new markets and product categories using ABG's global network. While specific brands working directly with Guess post-acquisition were not detailed, it is expected that collaborations and shared retail and marketing platforms will be a part of the new venture.
This move is set to reshape the fashion landscape, as Guess continues to leverage its iconic brand and ABG's industry expertise to drive growth and innovation in the years to come.
