After an acquisition offer to take Guess?, Inc. (NYSE: GES) private, the company’s shares saw a significant increase. The stock of GES was trading at $12.16 as of the most recent market check, which is a significant 25.36% gain.
Proposed Transaction and Financial Backing
Through its subsidiary, WHP Investments, LLC, WHP Global has formally submitted a non-binding purchase bid to GUESS’ Board of Directors. WHP Global plans to pay $13.00 per share in cash for all of GES’ outstanding shares under the terms of the proposal.
According to the offer, a combination of third-party debt financing and equity investment would be used to finance the proposed deal. Furthermore, it makes the assumption that important stakeholders—known as the Proposed Rollover Shareholders—will participate in reinvestment or rollover. WHP Global intends to keep Guess? on course in terms of both strategy and operations, making sure that the company’s present business model is not significantly altered.
Guess? has formed a Special Committee made up of impartial, independent members of its Board of Directors to carefully review the idea. The committee is assessing the offer under the direction of outside legal and financial counsel in order to decide on the appropriate course of action that will best serve the interests of shareholders.
Strategic Partnerships Strengthen Business Outlook
Guess? recently announced a major cooperation with WHP Global and Signal Brands in addition to the acquisition bid. The development and growth of Rag & Bone’s handbags and small leather goods category are the main objectives of the five-year license deal.
Since its beginnings in New York in 2002, rag & bone has earned recognition in the American fashion business, merging traditional workmanship with current cultural themes. It is anticipated that this collaboration would further accelerate the brand’s growth trajectory by utilizing Signal Brands’ experience and market knowledge. Signal Brands has been a Guess? licensee since 1990.
Long-Term Goals for Growth
Signal Brands has strengthened its position as a worldwide leader in the handbag industry by extending its partnership with Guess? for a further 15 years. The business sees the combination as a strategic asset that will boost design innovation and market expansion after acquiring Rag & Bone. According to industry commentators, these changes may put GES in a position for long-term growth in the face of shifting market conditions.