Fashion accessories company Fossil announced plans yesterday to acquire jewellery and watch manufacturer Skagen Designs.
In a bid to expand its portfolio, Fossil agreed to purchase the Danish brand Skagen and some of its global partners for approximately USD225 million in cash and 150,000 Fossil shares.
According to the agreement, Skagen’s owners may get an additional 100,000 Fossil shares if its products surpass certain revenue targets. It is expected the acquisition will be completed by February, subject to regulatory consent.
Although originally a Danish company, Skagen is now headquartered in Reno Nevada and co-owner Charlotte Jorst believes Fossil’s global distribution network will enable Skagen to reach different markets and create new opportunities for growth.
“Going from 60 countries to 120 for example – we’ll be able to get our jewellery out in many more retailers,” Jorst told US news media. “We’ll do handbags, shoes, clothes – everything with the Skagen name. They’ll make it a much bigger company!”
Fossil CEO Kosta Kartsotis said the company was privileged to join Skagen saying the Danish company has “enormous potential as a lifestyle brand.”
Source: Jeweller Magazine
