The move will continue Movado’s push to increasingly target younger consumers with affordable watch and fashion accessory brands and the company said it intends to capitalize on MVMT’s “world-class digital strategy” which “has driven high brand awareness across social media with an active community of 4.5 million followers.”
MVMT was founded by Jacob Kassan, 27, and Kramer LaPlante, 26, in Los Angeles in 2013, initially selling watches and later adding sunglasses and accessories in 2017. The company has experienced significant growth with expansion into more than 160 countries through a direct-to-consumer business model.
“The acquisition of MVMT will provide us greater access to millennials and advances our Digital Center of Excellence initiative with the addition of a powerful brand managed by a successful team of highly creative, passionate and talented individuals.”
“We share many of the same strategies as Movado Group, including a focus on unique design, product innovation, and providing compelling value for the consumer, which aligns us on future plans for our brand and will create a smooth transition.”
Movado will make an initial payment of about $100 million, or approximately $85 million net of tax benefit, plus two future contingent payments to be determined by MVMT’s future financial performance that combined could total up to an additional $100 million before tax benefits.
MVMT products are primarily sold through its global e-commerce site and also a few select retailers in the United States such as Nordstrom and Bloomingdales. The company will continue to operate under the leadership of Kassan and LaPlante, who are expected to retain MVMT’s team in Los Angeles.
Paramus, N.J.-based Movado designs, manufactures and distributes watches under its own Movado, Concord and EBEL brands as well as licensed brands including Coach, HUGO BOSS, Juicy Couture, Lacoste, Tommy Hilfiger and Scuderia Ferrari. The company employs more than 1,330 people.
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