US-based Fossil, Inc, a designer and manufacturer of clothing and accessories, is acquiring Skagen Designs Ltd and certain of its international affiliates, for around $225 million in cash.

Skagen, based in Reno, Nevada was founded in 1989 by Henrik and Charlotte Jors. The company started as the US representatives for a Danish manufacturer of corporate branded business gift watches and for exclusive Jacob Jensen designer watches.

It now manufactures, markets and distributes contemporary Danish design accessories including watches, jewellery, sunglasses and clocks.

Its products are sold in 75 global markets and in company-owned and operated retail stores in Denmark, Germany, the UK and Hong Kong.

Under the deal, Fossil will pay $225 million in cash and 150,000 Fossil shares. It will also give an additional 100,000 additional shares if Fossil's net sales of Skagen-branded products exceed certain sales thresholds.

Fossil's stock closed today at $78.98.

Founded in 1984 and based in Richardson, Texas, Fossil is a global design, marketing and distribution company that specialises in consumer fashion accessories.

The company's product portfolio include an extensive line of men's and women's fashion watches and jewelry sold under proprietary and licensed brands, handbags, small leather goods, belts, sunglasses, soft accessories, shoes, and clothing.

It offers a line of fashion watches under its proprietary brands, such as Fossil, Michele, Relic, and Zodiac, and through licensed brands, including Adidas, Burberry, Diesel, Dkny, Emporio Armani, Marc By Marc Jacobs, and Michael Kors.

Its products are sold to department stores, specialty retail stores, and specialty watch and jewelry stores in the US and in approximately 120 countries worldwide through 23 company-owned foreign sales subsidiaries and a network of approximately 60 independent distributors.

The company also distributes its products in over 360 company-owned and operated retail stores and through international and US e-commerce websites.

Year over year, Fossil has been able to grow revenues from $1.5 billion to $2 billion and increase net profit from $139.2 million to $255.2 million last year.

"We have long admired Fossil and believe they will bring great passion and vision to our brand," saidCharlotte Jorst, co-founder of Skagen. "The opportunities for Skagen under the Fossil umbrella are endless and we look forward to building this wonderful brand," added Henrik Jorst, co-founder of Skagen.

Fossil's CEO, Kosta Kartsotis, said, "It is a great privilege to join together with our Skagen colleagues to share their Danish design story with the world. Skagen is unique and has enormous potential as a lifestyle brand. We see many similarities in the history and values of our two companies and look forward to creating something greater together."