Latest news with #MauriceMarciano
Forbes
8 hours ago
- Business
- Forbes
Is The Risk Too High As Guess Stock Skyrockets 26% On Privatization Deal
Guess Stock (NYSE: GES) is entering a crucial stage, revealing its intentions to privatize through a $1.4 billion agreement with co-founders Maurice and Paul Marciano, CEO Carlos Alberini, and Authentic Brands, the owner of Reebok. Authentic Brands will obtain 51% of Guess's intellectual property, while the remaining shares will remain with current shareholders. Shareholders will be compensated with $16.75 per share in cash, a 26% premium above the previous closing price. The completion of the transaction is anticipated by Q4 of the existing fiscal year (ending Jan 2026), subject to regulatory approval. After the announcement, Guess shares surged almost 26% on August 20, showcasing investor confidence. This decision grants the company strategic flexibility in a tough retail landscape and amidst increased M&A activity in the apparel sector. As a private entity, Guess will be able to focus on long-term operational and brand initiatives without the constraints of quarterly results or market oversight. The expertise of Authentic Brands in licensing and brand management may further enhance Guess's global presence. See Buy or Fear Guess Stock? However, investing in any single stock involves substantial risk. The Trefis High Quality Portfolio is crafted to mitigate stock-specific risk while providing potential gains. Separately, check BBAI Stock To $1? Risks to Consider While the privatization deal offers strategic benefits, various risks persist: Financial Profile Looking for Smarter Alternatives? The privatization initiative offers Guess strategic flexibility and possible long-term advantages, yet considerable operational, financial, and market risks remain. Weak margins and high debt levels render the stock risky for current investors. While it may be wise to steer clear of GES stock's apparent limited upside for the moment, you might consider the Trefis Reinforced Value (RV) Portfolio, which has eclipsed its all-cap stocks benchmark (a combination of the S&P 500, S&P mid-cap, and Russell 2000 benchmark indices) to yield strong returns for investors. What accounts for this? The quarterly rebalanced assortment of large-, mid- and small-cap RV Portfolio stocks has provided a responsive strategy to capitalize on favorable market conditions while containing losses during downturns, as outlined in RV Portfolio performance metrics.
Reuters
9 hours ago
- Business
- Reuters
Guess to go private in $1.4 billion deal with Authentic Brands, co-founders and CEO
Aug 20 (Reuters) - Guess (GES.N), opens new tab said on Wednesday it has agreed to be taken private by a group, including its co-founders, CEO and Reebok-owner Authentic Brands, in a deal valuing the designer apparel brand at $1.4 billion, including debt. As part of the transaction, co-founders Maurice Marciano and Paul Marciano, and CEO Carlos Alberini have partnered with Authentic Brands, which will acquire 51% of all Guess' intellectual property. Guess' existing shareholders will own the rest. Guess shareholders will receive $16.75 per share in cash, representing a 26% premium to Tuesday's close. Its shares jumped nearly 26% at $16.77 in early trading. They have lost about 38% over the last 12 months amid tough competition for consumer dollars and economic uncertainty. The deal is the latest in a wave of M&A activities among apparel and footwear companies, including 3G Capital's agreement to take Skechers private, Dick's Sporting Goods' announcement to acquire Foot Locker, and Authentic Brands' purchase of Dockers from Levi Strauss & Co earlier this year. Taking Guess private will provide the company with greater flexibility to navigate today's complex operating environment and pursue a more focused, long-term strategy, the company said. Prior to the deal announcement, its co-founders and CEO together owned roughly 40.18% of the company, with Paul Marciano holding 28%, according to data compiled by LSEG. Guess had received a $13-per-share take-private offer from brand management firm WHP Global in March. It had then formed a special committee to evaluate the proposal. "The special committee evaluated a number of potential options and unanimously determined that the transaction with Authentic and (existing shareholders) is the best path forward for Guess," said Alex Yemenidjian, chairman of the special committee. The deal is expected to close in the fourth quarter of fiscal year 2026, subject to regulatory approvals.
Time of India
12 hours ago
- Business
- Time of India
Guess to go private in $1.4 billion deal with Authentic Brands, co-founders and CEO
Guess said on Wednesday it has agreed to be taken private by a group, including its co-founders, CEO and Reebok-owner Authentic Brands, in a deal valuing the designer apparel brand at $1.4 billion, including debt. As part of the transaction, co-founders Maurice Marciano and Paul Marciano , and CEO Carlos Alberini have partnered with Authentic Brands, which will acquire 51% of all Guess' intellectual property. Guess' existing shareholders will own the rest. Guess shareholders will receive $16.75 per share in cash, representing a 26% premium to Tuesday's close. Its shares jumped nearly 26% at $16.77 in early trading. They have lost about 38% over the last 12 months amid tough competition for consumer dollars and economic uncertainty. The deal is the latest in a wave of M&A activities among apparel and footwear companies, including 3G Capital's agreement to take Skechers private, Dick's Sporting Goods' announcement to acquire Foot Locker, and Authentic Brands' purchase of Dockers from Levi Strauss & Co earlier this year. Taking Guess private will provide the company with greater flexibility to navigate today's complex operating environment and pursue a more focused, long-term strategy, the company said. Prior to the deal announcement, its co-founders and CEO together owned roughly 40.18% of the company, with Paul Marciano holding 28%, according to data compiled by LSEG. Guess had received a $13-per-share take-private offer from brand management firm WHP Global in March. It had then formed a special committee to evaluate the proposal. "The special committee evaluated a number of potential options and unanimously determined that the transaction with Authentic and (existing shareholders) is the best path forward for Guess," said Alex Yemenidjian, chairman of the special committee.
USA Today
a day ago
- Business
- USA Today
Guess goes private: What investors should know about the $1.4 billion acquisition
Guess GES.N said on Wednesday it has agreed to be taken private by a group, including its co-founders, CEO and Reebok-owner Authentic Brands, in a deal valuing the designer apparel brand at $1.4 billion, including debt. As part of the transaction, co-founders Maurice Marciano and Paul Marciano, and CEO Carlos Alberini have partnered with Authentic Brands, which will acquire 51% of all Guess' intellectual property. Guess' existing shareholders will own the rest. Guess shareholders will receive $16.75 per share in cash, representing a 26% premium to Tuesday's close. Its shares jumped nearly 26% at $16.77 in early trading. They have lost about 38% over the last 12 months amid tough competition for consumer dollars and economic uncertainty. The deal is the latest in a wave of M&A activities among apparel and footwear companies, including 3G Capital's agreement to take Skechers private, Dick's Sporting Goods' announcement to acquire Foot Locker, and Authentic Brands' purchase of Dockers from Levi Strauss & Co earlier this year. Retailers make headlines: Target CEO Brian Cornell to step down after 10 years, new CEO named Taking Guess private will provide the company with greater flexibility to navigate today's complex operating environment and pursue a more focused, long-term strategy, the company said. Prior to the deal announcement, its co-founders and CEO together owned roughly 40.18% of the company, with Paul Marciano holding 28%, according to data compiled by LSEG. Guess had received a $13-per-share take-private offer from brand management firm WHP Global in March. It had then formed a special committee to evaluate the proposal. "The special committee evaluated a number of potential options and unanimously determined that the transaction with Authentic and (existing shareholders) is the best path forward for Guess," said Alex Yemenidjian, chairman of the special committee. The deal is expected to close in the fourth quarter of fiscal year 2026, subject to regulatory approvals. Reporting by Savyata Mishra in Bengaluru; Editing by Shilpi Majumdar
Hypebeast
a day ago
- Business
- Hypebeast
Guess Goes Private With Authentic Brands in $1.4 Billion Deal
Authentic Brandshas agreed to buy a majority stake inGuess? a value of $1.4 billion USD, including debt. According toReuters, 51% of allGuess' intellectual property will be owned by Authentic Brands in partnership with founders Maurice Marciano and Paul Marciano, as well as current CEO Carlos Alberini. The company's shares increased by more than 25% in early trading, clocking in at $16.77 — a welcome adjustment from a tough year financially. Guess now joins the authentic brand family, which includes Reebok, Brooks Brothers, Nautica, Sperry, and most recently, Dockers. The move is a change from its earlier talks with WHP Global to gain a major stake in the company in April 2025.
