Fossil Acquires Skagen Designs
April 10, 2012
Watch and timepiece supplier Fossil (asi/55145) announced last week that it has
completed its previously-announced acquisition of Skagen
Designs Ltd. (asi/87560). The deal, which also includes some of Skagen's international affiliates, is for $231.7 million in
cash, which includes a working capital adjustment of approximately $6.7
million, and 150,000 shares of Fossil Inc. common stock (NASDAQ: FOSL).
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.
Doug Smith, vice president of sales and operations for the
corporate markets division of Fossil, says the supplier is looking forward to
selling and marketing Skagen's product line to the
industry. "Fossil Corporate Markets is very excited about this acquisition
and look forward to the many possibilities Skagen
brings to the table," he said. "Both of our companies share a common
interest in protecting the Skagen brand during this
transition and look forward to integrating into a successful business endeavor.
We will ride on the coat tails of the success that Skagen
demonstrates in consumer retail markets and turbo-charge the opportunities in