The Swatch Group, which terminated a partnership with jeweller Tiffany in 2011, has re-entered the jewellery acquisitions territory, buying Harry Winston’s watch and jewellery for US$750 million in cash and US$250 million in net debt, according to Reuters.
Swatch Group CEO Nick Hayek believes that their new brand could generate more than 1 billion CHF in sales and 250 milion in net profit within four to five years, and is also quoted as telling Reuters, in an interview, that “if watches continue to grow as dynamically as in 2012, 9 billion Franc sales are within reach in 2013. Now in view of this acquisition, it can of course be even more”. The Swatch Group had sales of 8.1 billion CHF in 2012.
For more information read the Reuters report here.