Guess? Inc., the Los Angeles-based fashion brand that specializes in denim, is going private in a $1.4-billion deal with Authentic Brands Group.
Under the terms of the deal, the company’s co-founders Maurice and Paul Marciano, as well as chief executive Carlos Alberini, will own 49% of its intellectual property. Authentic Brands Group will own 51%.
Shares for Guess jumped more than 25% in midday trading on Wednesday. Shareholders will receive $16.75 per share in cash as a result of the sale, a 26% premium to the stock’s closing price on Tuesday.
Current Guess management will continue to run the business and own 100% of the operating company, Guess said in a release.
“We look forward to building on the significant progress we have made to strengthen our organization,” Alberini said in a statement. “As a private company benefiting from the perspectives of a globally recognized licensing partner, Guess? will have enhanced flexibility to navigate today’s complex operating environment.”
Authentic Brands Group owns several popular brands, including Champion and Eddie Bauer. The transaction between Guess and Authentic Brands is expected to close in the fourth quarter of Guess’ 2026 fiscal year.
