Guess stock rebounded nearly 26% Monday after a $13 per share acquisition proposal from New York-based WHP Global. The nonbinding cash offer for outstanding shares proposed the Guess apparel brand would "maintain its ordinary course of business and that there will be no material change to the strategic and operational position of the company."
Guess reportedly formed a special committee of independent directors to evaluate the proposal, according to a company statement. The company said it would withhold further comment on the matter until the completion of the committee's evaluation.
Guess revolves largely around its namesake, with a smaller contribution from Marciano women's clothing and accessories. Previously, Guess partnered with WHP in February 2024 to acquire New York-based fashion brand Rag & Bone. Guess contributed $56.5 million to the deal. It expanded its revolving credit facility by $50 million in April 2024.
The company reported long-term debt in the November-ended quarter of $238.3 million, up from $28.2 million in the quarter ended February 2023.
Shares of Guess stock bolted more than 31% higher before trimming gains on Monday. The move left shares above their 50-day moving average for the first time since August. Guess shares had deteriorated 71% from an April 2024 high.
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