Guess? to go private in $1.4 billion deal with Authentic Brands, valuing company at a 73% premium.

Guess? will go private in a $1.4 billion deal with Authentic Brands, valuing the company at $16.75 per share, a 73% premium from the original proposal. Guess? shareholders will receive cash, while existing shareholders will retain 49% of Guess? intellectual property. Current management will continue to run the business, citing greater flexibility as a private company. Guess? shares surged 25.7% to $16.75 on Monday morning.

Guess? Inc. (NYSE: GES) has announced plans to go private in a $1.4 billion deal with Authentic Brands Group LLC, valuing the company at $16.75 per share, a 73% premium from the original proposal. The transaction, which is expected to close in the fourth quarter of 2026, will see existing shareholders receive cash, while rolling shareholders will retain 49% of Guess? intellectual property. Current management, including Carlos Alberini, will continue to run the business, citing greater flexibility as a private company. Guess? shares surged 25.7% to $16.75 on Monday morning [1].

The deal, which involves Authentic Brands acquiring a majority stake in Guess? intellectual property, is part of a strategic partnership between the two companies. Authentic Brands, led by CEO Jamie Salter, has built a portfolio of over 50 fashion, celebrity, and media brands through acquisitions. Guess?, founded in 1981 by the Marciano brothers, has been restructuring its operations to boost productivity and integrate Rag & Bone, the fashion brand it acquired in 2024. The company has been focusing on store closures in the US and investments in direct-to-consumer sales [2].

Guess? reported quarterly revenue that surpassed analysts' expectations in June, despite shrinking comparable store sales in Europe, Asia, and the Americas. The company expects growth to be driven by the expansion of Rag & Bone and its denim line. The transaction is expected to close in the fourth quarter of 2026, subject to regulatory approvals and other customary conditions [1].

References:

[1] https://www.bloomberg.com/news/articles/2025-08-20/guess-will-go-private-in-1-4-billion-deal-with-authentic-brands
[2] https://www.nasdaq.com/press-release/guess-co-founders-maurice-and-paul-marciano-and-ceo-carlos-alberini-partner-authentic