The powerful fashion accessories and watch wholesale/retail powerhouse just keeps getting bigger. Fossil’s latest news is its intent to buy watch, clock, sunglass and jewelry company Skagen Designs LLC, a brand steeped in sleek, Danish design.
The purchase price of the deal, which should be finaled next month, is $225 million in cash, subject to a working capital adjustment and 150,000 shares of Fossil common stock. Fossil trades on the NASDAQ under the ticker FOSL.
Based in Reno, Nevada, Skagen has regional offices in Denmark, Hong Kong, Germany, the United Kingdom and Canada. The acquisition includes international affiliates as well. In addition to its five U.S. outlet stores, Skagen opened its first U.S. flagship store in November 2011 at the Garden State Mall in New Jersey.
Skagen’s Opportunities: ‘Endless’
“It is a great privilege to join together with our Skagen colleagues to share their Danish design story with the world,” said Kosta Kartsotis, Fossil’s ceo, in a statement released Monday. “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.”
Henrik Jorst, co-founder of Skagen, confirmed the sentiment: “The opportunities for Skagen under the Fossil umbrella are endless and we look forward to building this wonderful brand.”
While a multi-classification accessories company, Fossil has its roots in watches. In addition to proprietary brands Fossil, Relic, MW, MW Michele, Mobilewear and Zodiac, Fossil also has licenses for Adidas, Burberry, Diesel, DKNY, Emporio Armani, Michael Michael Kors and Marc by Marc Jacobs. It’s most recent addition was the license for Michael Kors jewelry last March.
In the early 1990s, the company expanded into handbags, belts, small leathergoods and sunglasses under Fossil and Relic brands, later adding jewelry under Fossil, Diesel, Emporio Armani, and most recently, Michael Kors.