The Whp Grouplicensed specialist and that last year associated with Guess to buy Rag & Bone, has presented a non -binding proposal to acquire the shares of Guess that are not in the hands of the three managers at a price of 12 euros per shareaccording to the company in a statement.
The news has been well received by investors, which has caused a 30.1 % increase in the value of Guess shares, reaching 11.60 euros on Monday.
What will happen if the agreement is specified?
Sources close to the operation indicate that, if the agreement was completed, Whp Global would become the owner of the Guess brand, while the current management would retain the operational control of the company and continue to administer the stores under license.
The agreement still depends on several factors, but financing is not one of them, because Sources of the buyer potential guarantee that they have the necessary liquidity to carry out the transaction. To analyze the offer, Guess has created a special committee composed of independent directors and without interest in the operation.
The weight of the main shareholders
Paul Marciano, creative director of Guess, has 19.5 million shares, which is equivalent to 37.6 % of the company. His brother Maurice Marciano, who retired in 2023, has 4.9 million shares (9.6 % of the total). For his part, Carlos Alberini, CEO since 2019, has 1.7 million shares, representing 3.4 % of the company. Together, the three managers have approximately 50.6 % of the company, which means that Whp would enter the company as a minority partner, although with the greatest individual participation.
According to documents presented to the US stock and values commission (SEC), Paul Marciano has maintained “preliminary discussions and a high level” with WHP. However, he has made it clear that he would not support any transaction in which he cannot remain a shareholder. So far, he has not signed any agreement with WHP or with any other interested in the operation.
Guess and the transformation of the brand management business
If the sale is specifiedGuess would join a growing trend in the fashion industry, in which groups specialized in brand management acquire intellectual property rights and grant exploitation licenses to operators and manufacturers.
Holdings such as Whp Global, Authentic Brands Group and Marquee Brands have gained ground and value to the point of adding a combined value of 45.5 billion euros in retail sales. Yehuda Shmidman, co -founder, president and CEO of Whp, predicted last year that this market will double until reaching 91 billion euros in the next five years.
Whp Global already manages more than 6.4 billion euros in retail sales through 14 brands, including names recognized as Vera Wang, Bonobos, Express and G-Star, among others.
Although companies specialized in intellectual property have existed for years, their business model has evolved. Before, they focused on acquiring brands in crisis to extract maximum value before their disappearance, but now they seek to invest in companies with growth potential.
Shmidman stressed that this was the case of Vera Wang, and it seems that Guess follows a similar strategy. Although its stock market contribution is relatively low, the company remains profitable and maintains a business value equivalent to three times its EBITDA (profits before interest, taxes, depreciation and amortization).
Not all acquisitions have gone well
Despite the rise of the brand management model, some acquisitions have not had the expected success. For example, Whp invested in Express and associated with the firm to acquire bonobos, but Express faced economic difficulties and had to declare in bankruptcy, which led to Whp and its landlords to take control of the company.
Also, last Sunday, the American subsidiary of Forever 21, owned by Authentic Brands Group, also declared bankruptcyjust five years after being rescued from a similar situation. However, the Forever 21 brand itself is not part of the bankruptcy process.
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