Movado sells 95% of EBEL for $66.5 million

• Movado Group (NYSE:MOV) agreed to sell a 95% interest in its EBEL brand for $66.5 million to a buyer group led by Montres Journe.
• Movado will retain a 5% stake, while Chanel and Swiss watch executive Pierre Jacques will also participate in the new ownership structure.
• The company said the sale will let it focus more closely on its accessible luxury and fashion watch and jewelry portfolio.

Movado Group (NYSE:MOV) entered a binding agreement to sell a 95% interest in EBEL for $66.5 million to a strategic buyer group led by Montres Journe, with Chanel and Pierre Jacques participating.

Movado will retain a 5% interest in the business, while Jacques is expected to become EBEL’s Chief Executive Officer after the transaction closes.

EBEL-related trademarks, intellectual property, inventory, personnel and assets including the Villa Turque will be transferred into a newly formed Swiss subsidiary before 95% of that entity is sold.

Movado said the transaction is expected to close within the next few months, subject to customary adjustments and closing conditions.

Movado said the sale will allow it to focus more closely on its core accessible luxury and fashion watch and jewelry brands while remaining a minority owner of EBEL.

The company will also provide transition services after closing to support continuity for EBEL customers, employees and business partners during the ownership change.