US-based global design, marketing, and distribution company, Fossil has entered into an agreement to acquire Skagen Designs and some of its international affiliates, for around $225 million in cash. The acquisition, which is subject to certain conditions, including regulatory approval, is expected to be finalized in February.
According to the deal, Skagen may receive up to $225 million in cash and 150,000 shares of Fossil, Inc. common stock. It may also receive 100,000 additional shares of Fossil common stock if Fossil’s net sales of Skagen-branded products exceed certain thresholds.
Commenting on the acquisition, Kosta Kartsotis, CEO, Fossil Inc., said: "It is a great privilege to join our Skagen colleagues to share their Danish design story with the world. Skagen is unique and has enormous potential as a lifestyle brand. We see many similarities in the history and values of our two companies and look forward to creating something greater together."
Charlotte Jorst, Co-founder, Skagen, said the brand has long admired Fossil and believes it will bring great passion and vision for Skagen.
Based in Reno, Nevada, Skagen Designs manufactures, markets, and distributes watches, jewelry, sunglasses, and clocks. Skagen products are sold in 75 global markets and in company-owned and operated retail stores in Denmark, Germany, UK, Canada, and Hong Kong.
Fossil is a global design, marketing, and distribution company that specializes in consumer fashion accessories. The company offers men’s and women’s fashion watches, jewelry, handbags, small leather goods, belts, sunglasses, soft accessories, shoes, and clothing. Fossil’s products are sold to department stores, specialty retail stores, and specialty watch and jewelry stores in the US and in approximately 120 countries worldwide through 23 company-owned foreign sales subsidiaries and a network of approximately 60 independent distributors. It also distributes its products in over 360 company-owned and operated retail stores and through international e-commerce websites and the Company’s US e-commerce website.