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Swiss watch manufacturer Movado Group has signed a definitive agreement to acquire MVMT Watches, the owner of global lifestyle brand MVMT, for an initial payment of approximately $100m.
Of the total value of the transaction, around $85m net of tax benefits is expected to be generated from the acquisition and two future contingent payments.
Established in 2013, MVMT offers watches, sunglasses and other accessories through its direct-to-consumer business model across more than 160 countries globally.
The company’s products are marketed through its global e-commerce platform as well as at select retailers such as Nordstrom and Bloomingdales in the US.
The addition of the millennial watch brand to its network will allow Movado to accelerate its digital strategy, as well as offer a global growth opportunity to its portfolio.
It will also expand Movado’s exposure to aspirational and millennial consumers through MVMT’s watches, sunglasses and accessories.
Movado Group chairman and chief executive officer Efraim Grinberg said: “Today’s announcement marks an important milestone for Movado Group.