Guess and WHP Global acquire fashion brand Rag & Bone

Guess Inc. and global brand management company WHP Global announced Friday a definitive agreement to acquire New York-based fashion brand Rag & Bone.

As part of the acquisition, Guess will take the reins of Rag & Bone’s operating assets, while jointly owning its intellectual property with WHP Global. Guess will invest $56.5 million in the acquisition of Rag & Bone, with the possibility of additional profits. The transaction is expected to close during the first quarter of Guess’ fiscal 2025.

Under the terms of the agreement, Rag & Bone will remain headquartered in New York and operate as an independent fashion brand within the Guess portfolio.

“I am delighted with this new partnership with Guess and WHP Global. Today begins an exciting new chapter as Rag & Bone joins forces with a much larger international fashion company,” said Andrew Rosen, Chairman of the Board of Directors of Rag &Bone.

“It’s a great opportunity for our team to take the brand to the next level, combining our unique styles and respective expertise to create new possibilities for Rag & Bone on a global scale.”

Founded in 2002 in the heart of New York, Rag & Bone has established itself as a leader in American fashion, known for its fusion of traditional craftsmanship with contemporary cultural influences. The brand is known for its authentic style, especially in denim, offering garments that embody the New York aesthetic.

With 34 stores in the United States and 2 in the United Kingdom, in addition to a strong presence in boutiques, department stores and e-commerce channels globally, Rag & Bone reported unaudited annual revenues of approximately $250 million and EBITDA adjusted to $18 million in 2023.

The acquisition is expected to allow Rag & Bone to maximize its global expansion by benefiting from both the Guess and WHP Global platforms and their distribution partners and licensees around the world. Rag & Bone is also expected to benefit from Guess’ ability to support the growth of its product offering, expand the brand’s reach into new markets and drive operational efficiencies.

“Rag & Bone is a brand that I have always loved and respected. It is a brand well known for its preeminent position in American fashion that over the years has remained true to its roots and founding values, with an unwavering commitment to quality and authenticity,” said Paul Marciano, co-founder and creative director of Guess.

“This acquisition is the first in Guess’ 43-year history, and I am delighted to welcome Rag & Bone to our family. I look forward to working with Andrew Rosen and the talented team at Rag & Bone to continue international expansion of products and markets of the brand”.

Yehuda Shmidman, president and CEO of WHP Global, added: “The acquisition of Rag & Bone aligns us with powerful partners and increases WHP Global’s portfolio to more than $7.5 billion in retail sales across 11 brands. We have a strong respect for Rag & Bone’s business and brand positioning, and we look forward to building on its success as we take advantage of the attractive opportunities ahead.”