Movado Group Inc. has entered into a definitive agreement to sell a 95% interest in its EBEL brand for approximately $66.5 million. This strategic decision allows Movado to concentrate on its core accessible luxury and fashion watch and jewelry portfolio while providing EBEL with new ownership aimed at enhancing its long-term growth.
The sale, effective October 5, 2026, involves a buyer group led by Montres Journe SA, with participation from the luxury house Chanel and industry veteran Pierre Jacques, who will take on the role of Chief Executive Officer of EBEL. Movado will retain a 5% interest in the brand.
Efraim Grinberg, Chairman and CEO of Movado, expressed his satisfaction with the deal, stating, "This transaction reflects the continued strategic discipline with which we are managing our portfolio and allocating our resources." He emphasized the importance of placing EBEL with partners who have the expertise and commitment to unlock its potential.
Background
Movado Group Inc. (NYSE: MOV) is a leading designer and distributor of watches and jewelry, known for its brands such as Movado, MVMT, and Calvin Klein. The company operates in the Watches, Clocks, Clockwork Operated Devices/Parts sector, as classified under SIC 3873. In recent filings, Movado has been active in reshaping its portfolio, including this latest move to divest a significant portion of EBEL.
What the Filing Says
The SEC filing states, "Movado Group, Inc. and its subsidiary Movado Group Nederland B.V. entered into a definitive agreement to sell a 95% interest in the EBEL brand to a strategic buyer group led by Montres Journe SA, with the participation of the luxury house Chanel and Mr. Pierre Jacques." The transaction is subject to customary closing conditions and is expected to close in the fourth quarter of fiscal 2026.
Impact
This agreement is poised to impact various stakeholders, including Movado's employees, customers, and investors. By divesting a major brand, Movado aims to streamline its operations and focus on its primary brands, which could lead to enhanced performance in its core business areas. The luxury watch market will also be affected, as the new ownership structure of EBEL may shift competitive dynamics within the sector.
What's Next
The transaction is expected to close in the fourth quarter of fiscal 2026, pending the satisfaction or waiver of customary closing conditions, including a pre-closing reorganization. Movado Group will also provide transitional services to ensure a smooth handover of the EBEL brand.