Movado Group Inc., the Paramus-based watchmaker, has agreed to acquire MVMT Watches Inc. for approximately $100 million plus up to another $100 million in contingency payments.
Movado said in a news release that the deal for MVMT will be funded through cash and credit, with the final purchase price determined by MVMT’s future financial performance.
MVMT was founded by 27-year-old Jacob Kassan and 26-year-old Kramer LaPlante in 2013, and sells watches as well as sunglasses and accessories. Both are expected to remain brand leaders.
“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 prepared statement. “Today’s announcement marks an important milestone for Movado Group. 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 hopes the deal will bolster its appeal to millennials and provide significant global growth opportunities, while providing the MVMT brand with Movado’s infrastructure and distribution network. The company purchased another millennial-focused brand, Olivia Burton, last year.
MVMT employs approximately 40 people, Movado said.
The transaction is expected to close around Oct. 1, pending customary conditions and approvals.
Centerview Partners LLC served as Movado’s financial adviser, while Paul, Weiss, Rifkind, Wharton & Garrison LLP served as legal adviser. Rothschild & Co. was MVMT’s financial adviser, while Cooley LLP is its legal adviser.
