Fossil to buy accessories maker for $236.8 million

Fashion accessories maker Fossil Inc (FOSL.O) said it will buy privately held Skagen Designs Ltd for about $236.8 million in a cash and stock deal to add the maker of designer watches, jewelry, sunglasses and clocks to its portfolio.

Skagen.com

Fossil will pay Reno, Nevada-based Skagen Designs about $225 million in cash and 150,000 of its shares.

In addition, Skagen could receive up to 100,000 additional Fossil shares if the net sales of its branded products exceed certain targets, Fossil said in a statement.

The acquisition is expected to close by February 2012.

Skagen products are sold in 75 global markets and in company-owned retail stores in Denmark, Germany, United Kingdom and Hong Kong.

Shares of Richardson, Texas-based Fossil closed at $78.98 on Monday on the Nasdaq.

(Reporting by Arpita Mukherjee in Bangalore; Editing by Viraj Nair)