2012 | Consumer, Leisure and Retail Services
Advised
on its sale to
Overview of Transaction:
On December 31, 2012, Fossil, Inc. (NASDAQ:FOSL) acquired the Latin American distribution business and certain related assets from Bentrani Watches, LLC (“Bentrani Watches”)
Bentrani Watches is a leading distributor of consumer fashion watches and accessories to the Latin America market. Founded in 2002 and based in Miami, FL, Bentrani Watches sells its products in over 16 countries throughout the region, including Argentina, Chile, Colombia, Panama, Peru, Venezuela and Uruguay, through its network of independent distributors and local affiliates and 100+ company-owned and/or operated Shop-in-Shops and retail points-of-sale
Fossil, Inc. (“Fossil”) is a global design, marketing and distribution company that specializes in consumer fashion accessories. Fossil offers watches under its proprietary brands, such as FOSSIL, MICHELE, SKAGEN, RELIC, and ZODIAC; and under the licensed brand names, including ADIDAS, ARMANI EXCHANGE, BURBERRY, DIESEL, DKNY, EMPORIO ARMANI, MARC BY MARC JACOBS, and MICHAEL KORS. Fossil’s products are sold in over 120 countries through its 400+ company-owned and operated retail stores, 23 foreign sales affiliates and network of over 60 independent distributors. For the 12-month period ending 03/30/13, Fossil had $2.9 billion in sales and a market capitalization in excess of $6.0 billion
Strategic Rationale:
Strategic Fit: Bentrani Watches was the master distributor of Fossil for Latin America (ex-Brazil & Mexico) and represented Fossil’s largest 3rd party distributor worldwide
Accretive Transaction: Over a 10 year period, Bentrani Watches built an efficient, professional and profitable sales, marketing and distribution platform throughout the region in close partnership with Fossil
LATAM Strategy: The Bentrani Watches acquisition accelerates Fossil aggressive Latin America growth plan, allowing it to coordinate and consolidate regional strategy
Cobaltum Role / Results
Cobaltum acted as the exclusive strategic and financial advisor to Bentrani Watches
In addition to managing the entire sales process, Cobaltum delicately navigated a complex negotiation dynamic given the inherently conflicted customer-supplier business relationship between seller and buyer. Cobaltum’s involvement was key in creating an atmosphere of trust amongst the deal teams, conducive to closing a successful transaction
All cash transaction at an attractive valuation (terms not disclosed) for Bentrani Watches and its shareholders
Bentrani CEO/founder named as Fossil SVP, in charge of all of Fossil’s Latin American operations