Guess?, Inc. Receives Going-Private Proposal from WHP Global
Guess? (NYSE: GES) has received a non-binding proposal from WHP Global through WHP Investments, to acquire the company's outstanding shares at $13.00 per share in cash, excluding shares held by Paul Marciano, Maurice Marciano, and Carlos Alberini. The proposed transaction would be financed through equity, third-party debt, and rollover investments from existing shareholders.
The company has formed a Special Committee of independent directors to evaluate the proposal and determine the best course of action for Guess? and its shareholders. There is no guarantee of a definitive offer or transaction completion.
This announcement follows the April 2024 partnership between Guess? and WHP Global to acquire rag & bone, with Guess? operating the brand's stores in the U.S. and U.K.
Guess? (NYSE: GES) ha ricevuto una proposta non vincolante da WHP Global attraverso WHP Investments, per acquisire le azioni in circolazione dell'azienda a $13,00 per azione in contante, escluse le azioni detenute da Paul Marciano, Maurice Marciano e Carlos Alberini. La transazione proposta sarebbe finanziata attraverso capitale proprio, debito di terzi e investimenti di rollover da azionisti esistenti.
L'azienda ha costituito un Comitato Speciale di direttori indipendenti per valutare la proposta e determinare il miglior corso d'azione per Guess? e i suoi azionisti. Non c'è alcuna garanzia di un'offerta definitiva o del completamento della transazione.
Questo annuncio segue la partnership di aprile 2024 tra Guess? e WHP Global per acquisire rag & bone, con Guess? che gestisce i negozi del marchio negli Stati Uniti e nel Regno Unito.
Guess? (NYSE: GES) ha recibido una propuesta no vinculante de WHP Global a través de WHP Investments, para adquirir las acciones en circulación de la compañía a $13.00 por acción en efectivo, excluyendo las acciones en poder de Paul Marciano, Maurice Marciano y Carlos Alberini. La transacción propuesta se financiaría a través de capital, deuda de terceros e inversiones de rollover de accionistas existentes.
La empresa ha formado un Comité Especial de directores independientes para evaluar la propuesta y determinar el mejor curso de acción para Guess? y sus accionistas. No hay garantía de una oferta definitiva o de la finalización de la transacción.
Este anuncio sigue a la asociación de abril de 2024 entre Guess? y WHP Global para adquirir rag & bone, con Guess? operando las tiendas de la marca en EE. UU. y Reino Unido.
Guess? (NYSE: GES)는 WHP Global로부터 WHP Investments를 통해 비구속 제안을 받았습니다. 이 제안은 회사의 발행 주식을 주당 $13.00에 현금으로 인수하는 것으로, Paul Marciano, Maurice Marciano 및 Carlos Alberini가 보유한 주식은 제외됩니다. 제안된 거래는 자본, 제3자 부채 및 기존 주주로부터의 롤오버 투자로 자금을 조달할 예정입니다.
회사는 제안을 평가하고 Guess? 및 주주를 위한 최선의 행동 방침을 결정하기 위해 독립 이사들로 구성된 특별 위원회를 구성했습니다. 최종 제안이나 거래 완료에 대한 보장은 없습니다.
이번 발표는 2024년 4월 Guess?와 WHP Global 간의 rag & bone 인수 파트너십을 따르며, Guess?는 미국과 영국에서 브랜드 매장을 운영합니다.
Guess? (NYSE: GES) a reçu une proposition non contraignante de WHP Global via WHP Investments, pour acquérir les actions en circulation de l'entreprise à 13,00 $ par action en espèces, à l'exclusion des actions détenues par Paul Marciano, Maurice Marciano et Carlos Alberini. La transaction proposée serait financée par des fonds propres, de la dette de tiers et des investissements de rollover de la part des actionnaires existants.
L'entreprise a formé un Comité Spécial de directeurs indépendants pour évaluer la proposition et déterminer la meilleure ligne de conduite pour Guess? et ses actionnaires. Il n'y a aucune garantie d'une offre définitive ou de l'achèvement de la transaction.
Cette annonce fait suite au partenariat d'avril 2024 entre Guess? et WHP Global pour acquérir rag & bone, Guess? gérant les magasins de la marque aux États-Unis et au Royaume-Uni.
Guess? (NYSE: GES) hat ein unverbindliches Angebot von WHP Global über WHP Investments erhalten, um die ausstehenden Aktien des Unternehmens zu einem Preis von $13,00 pro Aktie in bar zu erwerben, ausgenommen die von Paul Marciano, Maurice Marciano und Carlos Alberini gehaltenen Aktien. Die vorgeschlagene Transaktion würde durch Eigenkapital, Fremdkapital von Dritten und Roll-over-Investitionen von bestehenden Aktionären finanziert.
Das Unternehmen hat einen Besonderen Ausschuss aus unabhängigen Direktoren gebildet, um das Angebot zu bewerten und den besten Handlungsweg für Guess? und seine Aktionäre zu bestimmen. Es gibt keine Garantie für ein endgültiges Angebot oder den Abschluss der Transaktion.
Diese Ankündigung folgt der Partnerschaft im April 2024 zwischen Guess? und WHP Global zur Übernahme von rag & bone, wobei Guess? die Geschäfte der Marke in den USA und im Vereinigten Königreich betreibt.
- Going-private proposal at $13.00 per share provides potential premium for shareholders
- Recent strategic expansion through rag & bone acquisition shows business growth initiatives
- No guarantee of transaction completion or definitive offer
- Potential conflicts of interest with key shareholders being excluded from the buyout
Insights
WHP Global's non-binding proposal to take Guess? private at
The transaction structure is noteworthy - key insiders including the Marcianos and Carlos Alberini would maintain their ownership stakes rather than cash out, suggesting confidence in the company's future prospects under private ownership. This arrangement also reduces the total cash outlay required by WHP to complete the transaction.
The timing is particularly interesting as it follows closely after Guess? and WHP Global partnered in April 2024 to acquire rag & bone, establishing a pre-existing business relationship that likely facilitated this proposal. Their prior collaboration provided WHP insight into Guess?'s operations and strategic direction.
For current shareholders, this offer presents a clear short-term value opportunity given the significant premium. However, the formation of a Special Committee of independent directors is critical to ensure minority shareholders' interests are protected, especially with major shareholders planning to roll over their equity.
The proposal's assumption of "no material change to the strategic and operational position" suggests WHP values Guess?'s current direction but likely sees opportunities to implement changes more efficiently outside the public markets, free from quarterly earnings pressures and reporting requirements.
This going-private proposal reveals a classic private equity playbook. WHP Global, having already established a working relationship with Guess? through their joint rag & bone acquisition, is making a calculated move to acquire the entire company at what they likely view as an opportune valuation.
The
The financing structure combining equity, debt, and insider rollovers is standard for take-private transactions of this nature. What's particularly telling is the timing - with Guess? shares trading at
For public shareholders, the premium offers immediate value realization. However, the Special Committee's role is important in determining whether
The relationship already established through the rag & bone acquisition provided WHP valuable insights into Guess?'s operations and management team, reducing their perceived risk and likely facilitating this broader acquisition proposal. Under private ownership, Guess? would gain flexibility to make longer-term strategic investments without quarterly public market scrutiny.
Guess? has formed a Special Committee of independent and disinterested directors of the Board (the “Special Committee”) to evaluate the proposal, with the assistance of outside financial and legal advisors, to determine the course of action that is in the best interest of Guess? and its shareholders.
There is no guarantee that any definitive offer will be made, that any agreement will be executed or that the proposed transaction in the proposal or any other transaction will be approved or completed. Guess? does not intend to comment further on this matter until the Special Committee has completed its evaluation of the proposal or until further disclosure is deemed appropriate. Guess? shareholders do not need to take any action at this time.
In April 2024, the Company partnered with WHP Global to acquire the intellectual property and operating assets of
About Guess?, Inc.
Guess? designs, markets, distributes and licenses a lifestyle collection of contemporary apparel, denim, handbags, watches, eyewear, footwear and other related consumer products. Guess? products are distributed through branded Guess? stores as well as better department and specialty stores around the world. As of November 2, 2024, the Company directly operated 1,057 retail stores in
Notice Regarding Forward-Looking Statements
Except for historical information contained herein, certain matters discussed in this press release, including statements concerning the Company’s expectations regarding the non-binding proposal received from WHP Global and uncertainty as to the pricing, timing or terms of any transaction with WHP Global or any other alternative transactions, are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are forward-looking statements. Forward-looking statements, which are frequently indicated by terms such as “expect,” “could,” “will,” “should,” “goal,” “strategy,” “believe,” “estimate,” “continue,” “outlook,” “plan,” “create,” “see,” and similar terms, are only expectations, and involve known and unknown risks and uncertainties, which may cause actual results in future periods to differ materially from what is currently anticipated.
Factors which may cause actual results in future periods to differ materially from current expectations include uncertainties regarding whether a definitive offer will be made to the Company, whether the proposed transaction or any other transaction will be approved by the Special Committee or the Board and the final terms of a definitive agreement, if executed; the expected timing and likelihood of completion of the proposed transaction, including the timing, receipt and terms and conditions of any required shareholder, governmental and regulatory approvals of the proposed transaction that could reduce anticipated benefits or cause the parties to abandon the transaction; risks related to disruption of management time from ongoing business operations due to the proposed transaction; the risk that the proposed transaction and its announcement could have an adverse effect on the ability of the Company to retain and hire key personnel and maintain relationships with its customers and suppliers, and on its operating results and businesses generally; litigation or administrative proceedings that may arise in connection with the proposed transaction; and other risks and uncertainties associated with the Company’s businesses set forth in the section entitled “Risk Factors” in the Company’s Securities and Exchange Commission (the “SEC”) filings, including, but not limited to, its most recent Annual Report on Form 10-K and its most recent Quarterly Reports on Form 10-Q, copies of which are on file with the SEC and available on the SEC’s website at www.sec.gov. The statements in this press release are made as of the date of this press release. The Company undertakes no obligation to update or revise any forward-looking statements to reflect events or circumstances after the date of this press release, whether as a result of new information, future events or otherwise, except as required by law.
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Guess?, Inc.
Fabrice Benarouche
Senior Vice President Finance, Investor Relations and Chief Accounting Officer
(213) 765-5578
Source: Guess?, Inc.
FAQ
What is the proposed acquisition price per share for Guess? (GES) by WHP Global?
Which shareholders are excluded from the WHP Global's acquisition proposal for GES?
How will WHP Global finance the proposed acquisition of Guess? (GES)?
What is the recent business relationship between Guess? (GES) and WHP Global?
