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Swatch Group acquires Harry Winston for 1 Billion USD

Marina Milojević | 01.14.13 | 04:56 AM

Swatch Group acquires Harry Winston for $1 Billion

The Swatch Group Ltd. has just pronounced that they have acquired 100% of shares of Harry Winston Inc. This means that the Swatch Group Ltd. now owns Harry Winston Production Company in Geneva, but still doesn't pose any rights to Harry Winston Diamond Corporation mining activities and diamond production. On the other hand, everything related to the production of watches and jewelry, as well as the prospects for Harry Winston’s 535 employees around the globe, is now in the hands of the Swatch Group.

A couple of months ago, Harry Winston corporation has announced that they are looking to sell the watch and jewelry business and completely focus on mining. They have been looking for a buyer since October 2012, when the value of Harry Winston’s luxury division was estimated at around $766 million, or $9 per share. Today, the acquisition figure sums to USD 750 million plus the assumption of up to USD 250 million of pro forma net debt.

Louis Moinet Geograph Australian Limited Edition

What does this mean in practical terms? First of all, it means that the Swatch Group will continue with the production of Harry Winston jewelry and watches, but in such a way that they will incorporate existing production into its own operations and processes. The Swatch Group will also install its own management, thus making the portion of the Harry Winston’s current employees needless. The transaction is still subject to the approval of the number of regulating authorities, but if everything goes well (and there is no obvious reason for this purchase not to be approved), Harry Winston will soon get under the same roof as many other successful luxury brands including Breguet, Jaquet Droz, Omega, Longines, Blancpain, Glashütte Original, etc.

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…” Referring to the small reference in Marilyn Monroe's song "Diamonds Are a Girl's Best Friend," which has made the brand famous, she adds – “…diamonds are still a girl’s best friend”.”

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