Movado Group Sells 95% Stake in Ebel Brand

By Bobby Samwell • Friday, October 09 01:43 • Permanent Link

Movado Group said it agreed to sell a 95% interest in its Ebel brand for $66.5 million, keeping the remaining 5% stake.

The deal hands Ebel to a buyer group led by Montres Journe, with Chanel and François-Paul Journe also involved. Pierre Jacques will become chief executive officer of Ebel after the transaction closes.

Movado said the move is designed to narrow its focus on its core accessible luxury and fashion watch and jewelry businesses. Ebel, founded in Switzerland in 1911, will be placed into a new ownership structure built around the brand.

The transaction includes trademarks, other intellectual property, inventory and certain other assets tied to Ebel, including the Villa Turque. Those assets will move into a newly formed Swiss subsidiary of Movado Group before 95% of that entity is transferred to the buyer group.

Movado said certain employees dedicated to Ebel will move to the new Swiss subsidiary, and the company will continue to provide transition services after closing. The closing is expected in the next few months. Today the company's shares have moved -0.88% to a price of $32.56. If you want to know more, read the company's complete 8-K report here.

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