×

Guess & Co. Corporation Pursuing Acquisitions of Middle Market Companies

Raleigh, NC, Aug. 18, 2017 (GLOBE NEWSWIRE) -- Guess & Co. Corporation a luxury, industrial, health care and real estate company based in North Carolina announced today that it is pursing acquisitions to build and grow its busines operations. The company is pursuing middle-market companies that will build and enhance its luxury, industrial, health care and real estate groups. Guess & Co. Corporation is projecting $250 million in consolidated gross revenue and $50 million in consolidated pre-tax net income for the year ending December 31, 2017. For the year ending December 31, 2018, the company is anticipating overall revenue of $1 billion and consolidated pre-tax net income of $200 million. The company has included expected acquisitions as part of those projections.



Guess & Co. Corporation intends to acquire companies that are generating between $10 million and $125 million in gross annual revenue. In acquiring exisiting companies in the middle market, Guess & Co. is looking to build its various business operations. After acquiring the companies, they will become part of a respective unit of Guess & Co. Corporation. The company intends to leave most management teams in place, but would expand those teams to include additional management professionals specializing in strategy, marketing, business development, sales, administration, finance and compliance. Acquired companies will be allowed to operate semi-autonomously within their business unit, while management will be under the direct supervision of the group head. Guess & Co. Corporation employs a roll-up strategy to grow acquired companies, in which it looks to acquire competitors of the acquired company as an add-on transaction to expand product offerings, service capabilities, and capacity resulting in substantial revenue growth. Additionally, Guess & Co. Corporation deploys sales forces that are trained to cross-sell to corporate, government, and retail customers across business lines, while having separate sales forces that specialize in certain business areas to ensure superior customer satisfaction and increased revenue.

"Acquisitions are a fundamental part of our overall business strategy which allows us to build our business units with existing operations and effectively compete in the marketplace," the company issued in a statement. Management of Guess & Co. Corporation is committed to acquisitions as a long-term business strategy for the company. "We anticipate acquisitions being a continuing part of our business plan," the company added. As a privately-held company, Guess & Co. Corporation will finance acquisitions through a combination of equity arrangements with selling shareholders and asset-based financing. Joint ventures, public companies, private companies and distressed companies are possible acquisition targets for Guess & Co. Corporation. The company is exploring acquisitions throughout the U.S. and abroad and expects several companies to be acquired by the end of 2017, with many more acquisitions occuring in 2018.

About Guess & Co. Corporation

Guess & Co. Corporation is a diversified company with four primary business units which are the luxury group, the industrial group, the health care group and the real estate group. We are based in Raleigh, North Carolina and conduct business in the United States and abroad. Most of our businesses are built organically, and we pursue acquisitions of existing companies that will enhance our operations.

Attachments:

A photo accompanying this announcement is available at http://www.globenewswire.com/NewsRoom/AttachmentNg/e96f5b5c-a063-4330-abd4-fdb3d8ee190b

Media Relations Guess & Co. Corporation 984-201-6390 media@guessandco.com

Source:Guess & Co.Corporation