Watch giant to purchase Danish brand for approx £147 million.
Fossil, the watch company that owns the licenses for brands including DKNY, Michael Kors and Marc by Marc Jacobs yesterday announced that it is set to acquire Skagen watches, one of the UK’s bestselling watch brands.
Fossil has agreed to purchase the Danish brand for approximately £225 million (£147m) and 150,000 Fossil shares. The purchase will also include some of Skagen’s global partners and acquisition is expected to be completed by February this year.
The company is currently based in Reno, Nevada in the U.S., and has looked to Fossil to help boost its global distribution to reach new markets.
Skagen’s owner Charlotte Jorst said that she is looking to double the number of countries the brand is presently sold in to 120. She also hopes the Fossil move will generate further sales of its steel jewellery range that was launched at BaselWorld last year.
“We’ll do handbags, shoes, clothes – everything with the Skagen name. They’ll make it a much bigger company,” Jorst told the U.S. media.
It is said that Skagen’s owners may get an additional 100,000 Fossil shares if its products surpass certain revenue targets. The company’s chief executive Kosta Kartsotis said that there was “enormous potential” to build a Skagen lifestyle brand beyond its watch collections.
“Skagen is unique. We see many similarities of our two companies [Fossil and Skagen] and look forward to creating something great together,” said Kartsotis.
As present Skagen is sold in 75 markets worldwide with regional offices in the UK, Denmark, Hong Kong, Germany and Canada. Its watches are sold through almost 400 UK retailers, including 45 Goldsmiths stores, 27 John Lewis branches and 250 independent retailers.
It has been dubbed the UK’s bestselling watch brand, and last year opened standalone stores in the Westfield shopping centres in London. It is also part of the Company of Master Jewellers (CMJ).
In the U.S. Fossil sells its own brand and designer branded watches and jewellery through stores including Nieman Marcus, Saks Fifth Avenue, Nordstrom, JCPenney, Kohl’s and Sears.
Fossil also sells its products in the United Stated through a network of 113 Company-owned stores, with 53 retail stores located in premier retail sites and 60 outlet stores located in major outlet malls.
Internationally, Fossil’s products are sold to department stores and specialty retail stores in over 90 countries worldwide through company-owned foreign sales subsidiaries and through a network of approximately 60 independent distributors.