Authentic Brands Group, owner of more than 50 fashion brands, is taking a majority stake in American lifestyle brand Guess, which aims to further expand its global reach through the partnership.
Accelerating growth
Authentic Brands Group is paying 1.4 billion dollars (1.3 billion euros) for a 51% stake in the American fashion brand, which is best known for jeans, handbags, fashion accessories and shoes. Guess founders Maurice and Paul Marciano, along with CEO Carlos Alberini, will retain the remaining 49%, while small shareholders will be bought out. The company thus disappears from the stock market.
With private ownership, Guess thinks it can respond more flexibly to changes in the fashion market. Within the Authentic Brands Group, which accounts for sales of some 32 billion dollars (30 billion euros) with brands such as Reebok, Champion, Quiksilver and Dockers, the fashion brand also hopes to grow faster worldwide.
Guess, accounting for sales of 6 billion dollars (5.2 billion euros) operates nearly 1,100 stores in Europe, the Americas and Asia, with another 527 stores operated by partners.
