Guess and WHP Team up To Acquire Rag & Bone
Fashion label Guess and brand management firm WHP Global have reached an agreement to acquire New York brand Rag & Bone.
Guess revealed that it will acquire and own all of the brand's operating assets and take up all related operating liabilities for the business. A joint venture, equally co-owned by Guess and WHP will acquire Rag & Bone's intellectual property.
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This is the first acquisition for Guess, and the company’s CEO Carlos Alberini expressed excitement at the potential to leverage the company’s “incredible platform with a strong global distribution network” to power the growth and expansion of Rag & Bone. “We expect the transaction to deliver earnings per share accretion in the first year and strong value creation for our shareholders for years to come.”
Since its foundation in 2002 in New York, Rag & Bone has become known for fusing traditional craftsmanship and contemporary cultural influences.
The brand currently has 34 stores across the US and two in the UK but also sells its products in luxury boutiques, department stores, and across e-commerce platforms. In 2023, the company reported an annual revenue of approximately $250 million.
Acquisitions Are in the Air
While never exactly a quiet area of the industry, consumer goods M&A activity has been notably busy in the early part of this year.
In January, Yeti set its sights on Mystery Ranch, laying out plans to purchase the high-end backpack maker for an undisclosed sum. This followed news that the company had already planned to buy Butter Pat, a cast-iron skillet company, as part of its strategy to bolster its position in the food and drink equipment category.
Utz Brands, meanwhile, sold off two subsidiaries and manufacturing facilities to fellow snack maker, Our Home. In another landmark sale, Haleon announced plans to offload its iconic ChapStick lip balm brand for $430 million.
Another consumer goods giant, Unilever, has also been making big changes to its portfolio removing Suave, Elida Beauty, and Dollar Shave Club from its offerings and acquiring two premium brands, Yasso in Ice Cream and K18 in Prestige Hair Care.
