Movado Group has entered into an agreement to acquire MVMT, the popular, millennial-focused watch and accessories brand, for $100 million, or approximately “85 million net of tax benefits,” Movado said in a press release. This is in addition to two future payments that could add up to an additional $100 million before tax benefits, depending on MVMT’s future performance as part of Movado’s portfolio.
MVMT was founded in 2013 by Jacob Kassan and Kramer LaPlante, two California-based twenty-somethings who had a vision to sell affordable, stylish watches to people their own age. It’s hard to argue with the success of that vision. Last year, MVMT achieved revenue of approximately $71 million, largely through a direct-to-consumer business model. Kassan and LaPlante will continue to operate MVMT under the structure of the deal.
“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,” Movado Chairman and CEO Efraim Grinberg said in a statement.
In addition to its namesake Movado brand, the group also owns Ebel and Concord, and holds licensing rights to make watches for several fashion marques, among them Lacoste, Tommy Hilfiger and Hugo Boss.