In the next 17 months, it expects 10% of its B2B customers will be transacting on the web, an executive says.
Fossil will acquire designer and web merchant Skagen Designs for $225 million.
Fossil Inc., a manufacturer and retailer of watches, apparel and accessories, is adding to its brand and e-commerce portfolio.
Fossil, No. 196 in the Internet Retailer Top 500 Guide, is acquiring Skagen Designs Ltd., a designer, manufacturer and online retailer of Danish-influenced accessories such as watches, jewelry, sunglasses and clocks for $225 million in cash and 150,000 shares of common stock at an unnamed price. Certain Skagen executives, including co-founder Charlotte Jorst, also are eligible to receive up to 100,000 additional shares of stock if certain undisclosed financial targets are met, says Fossil.
Fossil, which sells online in the U.S. and internationally in Australia, Germany, Singapore, the United Kingdom and elsewhere, and also operates a network of about 354 stores, is acquiring Skagen for its niche merchandise and its marketing reach to about 75 countries, the company says. “We see many similarities in our two companies,” says Fossil CEO Kosta Kartsotis. Fossil didn’t disclose any financial information on Skagen including total sales, net income or e-commerce revenue.
Following the expected completion of the deal in February, Skagen will continue to operate out of its current headquarters in Reno, NV. The acquisition of Skagen is the latest example of Fossil buying niche watch makerss. In 2001 Fossil acquired three small Swiss watch makers—Montres Antima SA, Meliga Habillement Horloger SA and Synergies Horlogeres SA—for an undisclosed price.