The deal gives the retailer control over the distribution of Roberto Coin jewelry in the U.S., Canada, Caribbean, and Central America.
Movado Buys Millennial-Targeted Brand for $100M
MVMT Watches was started in 2013 by two 20-somethings and has grown into a $70 million a year business.
Paramus, N.J.—Movado Group Inc. is set to acquire MVMT Watches Inc., a millennial-targeted watch and accessories company launched five years ago by two 20-somethings who dropped out of college to start a business.
Under the terms of the deal announced Wednesday, Movado will pay $100 million for the company initially, or approximately $85 million after taxes, and will make two future contingent payments that, combined, could total another $100 million. The exact amount of the second payment is contingent on MVMT’s financial performance under Movado’s ownership, with no minimum future payment required.
Movado said it is funding the acquisition through cash and borrowings under its revolving credit facility.
Southern California natives Jacob Kassan, now 27, and Kramer LaPlante, 26, started MVMT in Los Angeles in 2013 after initially raising $300,000 through two crowdfunding campaigns on Indiegogo.
The brand started by selling just watches before adding sunglasses and other accessories last year.
Although a few retailers in the United States like Nordstrom and Bloomingdales carry MVMT, the pair built their business primarily by selling online and targeting millennial consumers, with products that are “designed for the millennial consumer with the goal of changing the way the customer thinks about fashion by delivering high-quality watches and accessories at an affordable price,” Movado said in its announcement about the acquisition.
MVMT has a “world-class digital strategy,” Movado said, as well as high brand awareness on social media, with more than 4.5 million followers across its platforms.
The company’s revenue for its most recent fiscal year ended Dec. 31, 2017 totaled about $71 million, and their success at such a young age has landed Kassan and LaPlante features in numerous publications, including a spot on Forbes “30 Under 30” list.
The acquisition of MVMT gives Movado Group a “category-leading” millennial brand with exposure to younger consumers, a track record of sales growth and a strong digital presence, an area where Movado Group is investing and looking to grow.
For MVMT, being bought by Movado allows it benefit from the company’s global infrastructure and distribution network.
MVMT is the second millennial-targeted brand Movado has purchased. Last year, the Paramus, New Jersey-based watch company bought Olivia Burton, a U.K.-based watch and fashion jewelry brand.
“Today’s announcement marks an important milestone for Movado Group,” Chairman and CEO Efraim Grinberg said. “The acquisition of MVMT
The transaction is subject to customary closing conditions and is expected to close on or about Oct. 1.
The Latest
Show your mother some love with a piece of fine jewelry.
The company’s Easton location will remain open.
Tradeshow risks are real. Get tips to protect yourself before, during and after and gain safety and security awareness for your business.
Brian D. Fleming of Carla Corporation was elected to serve a one-year term in the role.
Sponsored by the Las Vegas Antique Jewelry and Watch Show
Tobak, author of “Ice Cold: A Hip-Hop Jewelry History,” shares how the exhibition came to be, and the pieces people may be surprised to see.
Meet Ben Claus—grand prize winner of For the Love of Jewelers 2023 Fall Design Challenge.
Stars adorned themselves in emeralds, platinum, and myriad bird motifs, writes Associate Editor Natalie Francisco.
M.S. Rau is set to open a seasonal gallery in the high-end resort town early next month.
The branded jewelry market is thriving, said Richemont Chairman Johann Rupert.
The six designers, all participants in the show’s Diversity Action Council mentorship program, will exhibit in Salon 634.
The highlight of his collection is the coveted Patek Philippe Grandmaster Chime, which could sell for up to $5 million.
The “Venetian Link” series modernizes the classic Veneziana box chain in its bracelets and necklaces.
The Seymour & Evelyn Holtzman Bench Scholarship will provide tuition assistance to two low-income students.
The Swiss watchmaker said the company’s plans to use a new version of the Hallmark crown on jewelry would confuse consumers.
The executive talked about the importance of self-purchasers and how fuel cell electric vehicles are going to fuel demand for platinum.
The Indian jeweler’s new store in Naperville, Illinois marks its 350th location, part of its ongoing global expansion plans.
It will award a graduating high school student with about $10,000 toward a GIA diploma and an internship with the Seattle-based jeweler.
Wheat Ridge, Colorado police took a 50-year-old man into custody Wednesday following a two-month search.
PGI partnered with four new and seven returning designers for its annual platinum capsule collection.
Nicolosi, president and CEO of The Kingswood Company, previously sat on WJA’s board from 2011 to 2018.
Karina Brez’s race-ready piece is a sophisticated nod to the horse-rider relationship.
The men are allegedly responsible for stealing millions in jewelry and other valuables in 43 burglaries in 25 towns across Massachusetts.
“Horizon” invites individuals to explore the limitless possibilities that lie ahead, said the brand.
The jeweler credits its recent “Be Love” campaign and ongoing brand revamp for its 17 percent jump in sales.
The co-founder of Lewis Jewelers was also the longtime mayor of the city of Moore.