Fossil, Inc. to Acquire Skagen Designs, Ltd.
January 10 2012 - 8:00AM
Fossil, Inc. (Nasdaq:FOSL) 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."
About Skagen
Skagen Designs is an international company offering contemporary
Danish design accessories including watches, jewelry, sunglasses
and clocks. In addition to its corporate headquarters in Reno,
Nevada, Skagen Designs and its international affiliates operate
regional offices in Denmark, Hong Kong, Germany, the U.K. and
Canada. Skagen products are sold in 75 global markets and in
company-owned and operated retail stores in Denmark, Germany, U.K.
and Hong Kong.
About Fossil
Fossil is a global design, marketing and distribution company
that specializes in consumer fashion accessories. The
Company's principal offerings include an extensive line of men's
and women's fashion watches and jewelry sold under proprietary and
licensed brands, handbags, small leather goods, belts, sunglasses,
soft accessories, shoes, and clothing. In the watch and jewelry
product category, the Company's offerings include a diverse
portfolio of globally recognized proprietary and licensed brand
names under which its products are marketed. The Company's
extensive range of accessories products, brands, distribution
channels and price points allows it to target style-conscious
consumers across a wide age spectrum on a global basis. The
Company's products are sold to department stores, specialty retail
stores, and specialty watch and jewelry stores in the U.S. and in
approximately 120 countries worldwide through 23 company-owned
foreign sales subsidiaries and a network of approximately 60
independent distributors. The Company also distributes its
products in over 360 company-owned and operated retail stores and
through international e-commerce websites and the Company's U.S.
e-commerce website at www.fossil.com, where certain product, press
release and Securities and Exchange Commission (the "SEC") filing
information concerning the Company is also available.
The Fossil, Inc. logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=3296
Safe
Harbor
Certain statements contained herein that are not historical
facts constitute "forward-looking statements" within the meaning of
the Private Securities Litigation Reform Act of 1995 and involve a
number of risks and uncertainties. The actual results of the
future events described in such forward-looking statements could
differ materially from those stated in such forward-looking
statements. Among the factors that could cause actual results
to differ materially are: changes in economic trends and financial
performance, changes in consumer demands, tastes and fashion
trends, lower levels of consumer spending resulting from a general
economic downturn, shifts in market demand resulting in inventory
risks, changes in foreign currency rates, and the outcome of
current and possible future litigation, as well as the risks and
uncertainties set forth in the Company's Annual Report on Form 10-K
for the fiscal year ended January 1, 2011 and its Quarterly Reports
on Form 10‑Q filed with the SEC. We undertake no obligation to
update or revise publicly any forward-looking statements, whether
as a result of new information, future events or otherwise, except
as required by law.
CONTACT: Mike Kovar
Chief Financial Officer
Fossil, Inc.
(972) 699-6811
Investor Relations:
Allison Malkin
Integrated Corporate Relations
(203) 682-8200
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