Richardson, Texas-based Fossil, Inc. announced today that 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. Skagen Designs, based in Reno, Nevada, manufactures, markets and distributes watches, jewelry, sunglasses and clocks. The acquisition, which is subject to certain conditions, including regulatory approval, is expected to be finalized in February 2012.
"We have long admired Fossil and believe they will bring great passion and vision to our brand," commented Charlotte Jorst, co-founder of Skagen. "The opportunities for Skagen under the Fossil umbrella are endless and we look forward to building this wonderful brand," added Henrik Jorst, co-founder of Skagen.
Fossil's CEO, Kosta Kartsotis, commented, "It is a great privilege to join together with 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."