Just Announced -
Swatch Group acquires the jewelry and watch brand Harry Winston Inc.
Biel/Bienne (Switzerland) / New York (USA), January 14, 2013 – The Swatch Group Ltd. in Biel/Bienne acquires 100% of the shares of the US company HW Holdings Inc., owner of Harry Winston Inc., 718 Fifth Avenue, New York 0019 (NY). The Swatch Group Ltd. acquires the brand and all the activities related to jewelry and watches, including the 535 employees worldwide and the production company in Geneva (Switzerland). The acquisition sum amounts to US$ 750 millionplus the assumption of up to US$ 250 million of pro forma net debt. The transaction does not include the mining activities of Harry Winston Diamond Corporation (TSX: HW, NYSE: HWD) – new: Dominion Diamond Corporation –, in Toronto (Canada).
Robert A. Gannicott – Chairman of the Board and Chief Executive Officer of Harry Winston Diamond Corporation commented: "The Harry Winston brand now has a new home that can provide the skills and support that it deserves to realize its true potential."
And Nayla Hayek, Chairwoman of The Swatch Group Ltd., says "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."
The transaction is subject to the approval of the different regulatory authorities.
It makes sense. Since Swatch group had their falling out,(lawsuit), with Tiffany last year they have probably been searching for a prestigious jeweler with whom to grow an in-house private label watch. They gain the prestige of the Opus collection and can now add a more "everyday" watch line to the stores. Now let's see if they can stay out of the way of the diamond sellers and let them continue to do what they do best.
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