In the United States, ABG has completed the acquisition of Guess. Authentic Brands Group has finalised the deal, spending a total of USD 1.475 billion. In the United Kingdom, meanwhile, Next Plc has acquired British footwear brand Russell & Bromley for GBP 2.5 million.
ABG buys Guess
The Guess brand generates around USD 6 billion in sales and will become the second-largest label in ABG’s portfolio after Reebok. With this acquisition, the US group’s retail sales will reach USD 38 billion. ABG has therefore completed the agreement to acquire a 51% stake in a new company that will own and license all of Guess’s intellectual property. The remaining 49% will stay with the brand’s co-founders Maurice and Paul Marciano, Nicolai Marciano, Guess CEO Carlos Alberini and other investors.
The deal was announced last August, with ABG outbidding WHP Global by valuing Guess at USD 1.4 billion. This acquisition will take Guess private after 30 years as a listed company. The total consideration required to complete the transaction, including all related costs and expenses, will amount to approximately USD 1.475 billion. “Even though Guess is doing USD 6 billion in sales, the question is why it isn’t doing $10 billion”, ABG CEO Jamie Salter told WWD. Salter pointed to what he described as outdated brand management that has never changed over the past 45 years.
Next rescues Russell & Bromley
Across the Atlantic, the UK has been the scene of another acquisition. Fashion giant Next has bought footwear retailer Russell & Bromley, which had been declared insolvent. Next paid GBP 2.5 million to rescue the historic brand, acquiring the name and three of its 36 stores. It also purchased some existing stock for a further GBP 1.3 million. What will happen to the other 33 stores? For the time being they remain open, but Will Wright, CEO of Interpath — the firm now administering Russell & Bromley — said that the future of the remaining 33 stores, as well as nine concession outlets employing around 400 people in total, is currently under review. This was reported by The Guardian.
Photos: Russell & Bromley and Guess
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