Skagen Designs, the watch and jewelry company will be bought by Fossil (NASDAQ: FOSL) for $225 million. The price is subject to some adjustments.
Fossil makes jewelry, watches and accessories
Fossil trades at $79, at the low end of its 52-week range of $66/$135. The accessory and watch business have become crowded recently as more brands of time piece reach the market. Swatch, the largest watch company in the world, recently reported strong Q4 numbers
According to Fossil
it has entered into an agreement to acquire Skagen Designs, Ltd. and certain of its international affiliates for approximately $225 million in cash, subject to a working capital adjustment, and 150,000 shares of Fossil, Inc. common stock. In addition, the sellers may receive up to 100,000 additional shares of Fossil common stock if Fossil’s net sales of Skagen-branded products exceed certain thresholds.