Harry Winston sold to Swatch
Swatch buys Harry Winston for US$1 billion
Posted January 16, 2013 | By Emily Mobbs • Former Editor
Swatch Group has expanded its luxury goods portfolio by acquiring the
jewellery and watch division of upmarket diamond jeweller Harry Winston.
The news comes just days after the Swiss watch giant announced a 14 per cent increase in gross sales for 2012.
The $710 million (US$750 million) purchase agreement gives Swatch 100 per cent ownership of the shares of US company HW Holdings, the owner of the Harry Winston brand. It will also assume as much as $237 million (US$250 million) in debt.
Pending regulatory approval of the deal, the Swiss company will acquire all of the brand’s activities related to jewellery and watches, including 535 employees worldwide and a production company in Geneva, Switzerland.
As previously reported by Jeweller, Swatch ended its partnership with Tiffany in 2011 due to contractual issues. The new acquisition highlights the brand’s continued commitment to the high-end jewellery market.
The transaction does not include the mining activities of Harry Winston Diamond Corporation, which is reportedly changing its name to Dominion Diamond Corporation once the transaction is complete.
Reports advise that Swatch Group and Dominion Diamond Corporation will continue to work together through a diamond-sourcing deal and also consider opportunities for a joint diamond-polishing venture.
Swatch Group chairwoman Nayla Hayek said in a company statement: “Harry Winston does brilliantly complement the prestige segment of the group. We are proud and happy to welcome Harry Winston to the Swatch Group family – diamonds are still a girl’s best friend”.
Also commenting on the deal, Harry Winston Diamond Corporation chairman of the board and chief executive officer Robert A. Gannicott noted: “The Harry Winston brand now has a new home that can provide the skills and support that it deserves to realise its true potential.”
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