Guess Inc. said it hired financial and legal advisors as it reviews last month’s buyout offer from WHP Global.
The Los Angeles denim company said Thursday its special committee hired Solomon Partners as its financial advisor and Willkie Farr & Gallagher LLP to advise on legal.
Two weeks ago, WHP Global offered to purchase Guess for $13 per share. That’s $865.9 million based on a calculation of shares as of November.
The company said its special committee is “evaluating and considering” the go-private deal “and has not yet determined whether it is appropriate to pursue the proposed transaction or any transaction.”
Guess and WHP Global were already linked with last year’s acquisition of New York contemporary brand Rag & Bone.
In the deal, Guess acquired the operations, while the denim company and WHP partnered on a joint venture to own the intellectual property.
It’s unclear whether the partnership allowed WHP a peak under the hood of Guess operations enough to push the acquisition offer.
The thought, at the time of the Rag & Bone deal, was that Guess aimed to build a multi-brand portfolio through acquisitions and in-house development. While the business has long had other denim-related brands beyond its namesake, such as Marciano, the new vision sought to accelerate its ownership of business lines well beyond jeans.
WHP is a brand management firm that has a mix of licensed brands and those it owns outright. That includes labels such as Vera Wang, Joe’s Jeans, G-Star and Bonobos. The privately-held company said its more than 14 brands have generated sales from stores of over $7 billion.
Guess was founded in 1981 by Paul Marciano, Georges Marciano, Maurice Marciano and Armand Marciano. The company leases some of its real estate from Paul and Maurice, including its Los Angeles headquarters, Paris showroom and Canadian warehouse.
An update on the Guess business is expected Thursday, when the company reports its fiscal fourth-quarter results.
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