Fossil Acquires Skagen Designs
Deal Is For $231.7 Million In Cash
Watch and timepiece supplier Fossil (asi/55145) announced in April 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, said 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 we 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 it in a successful business endeavor. We will ride on the coattails of the success that Skagen demonstrates in consumer retail markets and turbo-charge the opportunities in corporate channels."