Guess Inc. and WHP Global have reached a definitive agreement to acquire New York-based fashion brand Rag & Bone for $56.5 million, aiming to expand the brand's global presence and operational efficiencies.

Target Information

Guess Inc. and global brand management firm WHP Global have announced a definitive agreement to acquire Rag & Bone, a fashion brand based in New York City. Under this acquisition, Guess will take over the operational assets of Rag & Bone, while WHP Global and Guess will jointly own the brand's intellectual property. The financial terms of the deal include an upfront contribution of $56.5 million from Guess, with potential additional earnouts anticipated. The transaction is expected to be finalized during the first quarter of Guess’s 2025 fiscal year, positioning Rag & Bone as an independent brand within the Guess portfolio, with its headquarters remaining in New York City.

Founded in 2002, Rag & Bone has established itself as a prominent player in American fashion. The brand is renowned for its distinctive blend of traditional craftsmanship with contemporary cultural elements, particularly in the denim segment. With 34 stores in the United States and two in the United Kingdom, as well as a strong presence in boutiques, department stores, and various e-commerce platforms globally, Rag & Bone reported an unaudited annual revenue of approximately $250 million and an adjusted EBITDA of $18 million for 2023.

Industry Overview

The American fashion industry has experienced significant transformations in recent years, driven by changes in consumer preferences, digital innovation, and an increased focus on sustainability. As consumers are becoming more attentive to their shoppin