Movado Group has bought MVMT Watches Inc in a deal likely to be worth $100 million.
Los Angeles-based MVMT was founded by Jacob Kassan and Kramer LaPlante in 2013, initially selling watches and later adding sunglasses and accessories in 2017. It is celebrating its 5th anniversary this year and had sales of around $71 million last year.
The lifestyle brand and ecommerce business is now active in more than 160 countries.
The business is attractive to Movado thanks to its experience selling and using digital platforms to reach millennial customers looking for trend-led fashion watches and accessories at affordable prices.
Along with its own ecommerce business, MVMT also sells through a few select retailers in the United States such as Nordstrom and Bloomingdales.
Movado Group says the acqisition adds a category-leading millennial brand created though world-class digital execution that has driven a strong track record of growth, category-leading site traffic and growing customer relationships that will position Movado Group to accelerate its digital strategy.
It provides an opportunity to Movado Group’s portfolio as MVMT continues to cross-sell products within its existing portfolio, expand product offerings within its core categories of watches, sunglasses and accessories, and grow its presence in new markets through its direct-to-consumer and wholesale business.
MVMT will benefit from Movado Group’s global infrastructure and distribution network.
MVMT will continue to operate under the leadership of founders Mr Kassan and Mr LaPlante, who are expected to retain its team of 40 people based in Los Angeles.
Efraim Grinberg, Movado Group’s chairman and Chief Executive Officer, says: “Jake and Kramer have built an incredible brand and business in just five years and we are excited to have MVMT join Movado Group. 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. This announcement comes on the heels of last year’s successful acquisition of our millennial focused brand, Olivia Burton. We believe significant growth opportunity lies ahead for MVMT through category, channel and geographic expansion by leveraging our scale and infrastructure. I am looking forward to welcoming Jake and Kramer, along with their 40 employees, to our Company.”
Jake Kassan, co-founder and CEO of MVMT, adds: “As we looked at the future for MVMT, we felt Movado Group was the perfect fit to continue our growth. 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 Group has the expertise and resources to help expand MVMT to many untapped markets around the world.”