Movado Buys Olivia Burton Owner JLB Brands For £60 Mln Cash - Quick Facts

(RTTNews) - Watchmaker Movado Group, Inc. (MOV) announced Wednesday that it acquired JLB Brands Ltd., the owner of the Olivia Burton brand, on July 3 for approximately 60 million pounds in cash. The consideration is subject to working capital and other closing adjustments.

Movado expects the transaction to be immediately accretive exclusive of transaction related charges and the amortization of anticipated purchase accounting adjustments.

JLB Brands, founded by Lesa Bennett and Jemma Fennings in 2011, is UK's fastest growing fashion watch and jewelry brands. The company began selling fashion watches under the Olivia Burton brand in 2012, adding jewelry in 2016.

Olivia Burton is sold through retailers, including John Lewis, Watchshop, Argento, Selfridges and Beaverbrooks in the UK and recently through Nordstrom in the United States. The brand also operates a concession at Topshop's flagship location in Oxford Circus, London. Olivia Burton has approximately 33 employees all based in its Shoreditch head office in East London.

In its latest fiscal year 2017, Olivia Burton's revenue increased 64% to approximately 15 million pounds and is expected to generate approximately 25 million pounds in net sales in its fiscal year 2018.

Following the deal, Olivia Burton will continue to operate under the leadership of Lesa Bennett and Jemma Fennings, its founders, who will report to Efraim Grinberg, Chairman and Chief Executive Officer of Movado. The company plans to retain Olivia Burton's talented team in London.

Movado expects its global distribution network will help build and expand Olivia Burton on a global basis.

The company funded this transaction with cash held by non-U.S. subsidiaries.

Movado said it plans to discuss this transaction in more detail when it reports its second quarter fiscal 2018 results.

Movado's financial advisor for this transaction is Centerview Partners LLC. JLB Brands Ltd's financial advisor is BDO LLP.