PARAMUS, N.J (August 15, 2018) – Movado Group Inc. has announced a deal to buy MVMT Watches Inc., a producer of “millennial-focused” watches and accessories for up to US$200 million.
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.
“Jake and Kramer have built an incredible brand and business in just five years and we are excited to have MVMT join Movado Group,” Movado Chairman and CEO Efraim Grinberg, said in a statement.
“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.”
It is the second acquisition in the millennial-focused space by Movado in the past year. In July 2017, Movado bought UK fashion watch brand Olivia Burton for $77.6 million.
“As we looked at the future for MVMT, we felt Movado Group was the perfect fit to continue our growth,” Kassan said in a statement.”
“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.
The exclusive distributor for MVMT in Canada is Montreal-based Carmen Inc.
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.
