Harry Winston bought by Swatch Group

DonCorson

Announced this morning 14 Jan 2013:

Swatch Group has purchased Harry Winston US for 750mio US$ plus taking over debt of 250mio US$.
The Canadien activities of Harry Winston are not effected and are now called Dominion Diamond Corporation

Below the press release:

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 million plus 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).

Swatch Group acquires the jewelry and watch brand Harry Winston Inc.

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.

About Harry Winston Inc.

Founded in 1932, Harry Winston is the inventor of modern couture jewelry and is known as the "King of Diamonds" and "Jeweler to the Stars". The company has an unrivalled position as the most exclusive and prestigious jewelry retailer and is known for its expertise, fine craftsmanship, quality gems and innovative gemstone settings. Harry Winston is renowned for donating the world's most famous gemstone, the Hope Diamond, to the Smithsonian Institution in Washington D.C, where it has been one of the world's most visited exhibitions. In the fall of 2010, the Hope Diamond was displayed in a special setting designed by Harry Winston to mark the 50th anniversary of its donation.

About The Swatch Group Ltd.

Swatch Group is the world's number one maker of finished watches. Group companies sell watches under nineteen different brands and the multibrand Tourbillon retail mark. Present in all segments of the retail watch market, the Group is also active in the manufacture and sale of jewelry, watch movements and components. Swatch Group supplies nearly all components required to manufacture its finished watches and supplies movements and components to third-party watchmakers in Switzerland and around the world. Swatch Group is also the most important player in advanced nanomechanical and nanoelectronic technologies essential to watchmaking and other industries. The Group employs some 29,000 persons in over 50 countries. Gross sales in 2012 CHF 8.1 billion. www.swatchgroup.com

Press Release

This message has been edited by AnthonyTsai on 2013-01-14 06:15:06

Comments:

JDowning January 14th, 2013-01:16

It will be interesting to see the impact 3-5 years hence The price paid, representing 23 times EBITDA, indicates expectations of high growth and high margins (unless they are throwing money away and we can assume that is not the intention). It is said that Swatch bought it to fill the "jewelry watch" hole creat...

amanico January 14th, 2013-02:24

What I was thinking. We'll judge that in a few years.

Ed. W January 14th, 2013-06:57

This comes at quite the surprise will be interesting to see what happens, but I get a feeling that Swatch wants to compete more directly with Richemont.

Ornatus-Mundi January 14th, 2013-07:53

Would love to know Max Büsser's comment on this! NT no text

foversta January 14th, 2013-11:12

Obviously, we will carefully follow the next steps... And I wish the best for the Harry Winston team for this new page of its history. Fx

moc January 14th, 2013-12:45

It was in the air... heard it a couple of months back that there were some problems.... Lets see what happens,wishing all the best to the brand......... Mo

foversta January 14th, 2013-13:03

we spoke about this two months ago: here: Fx

moc January 14th, 2013-13:09

Didn t see this..... I really wish the brand all the best. Their innovations always been a breath of fresh air in the industry. Mo

foversta January 14th, 2013-13:10

Yes, I totally agree with your point of view.

AnthonyTsai January 14th, 2013-17:22

I hope for the best and am curious now to see what HW will release in the future now that they will be under the Swatch Group umbrella. I guess they'll have more affordable pieces in the $10k price range I hope? Cheers, Anthony

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foversta

2012: my Harry Winston year

foversta

Harry Winston is not a brand with very high production figures: only several thousands of watches are produced per year. However, 2012 was a very busy year with a lot of novelties for my deepest pleasure! I propose you a wrap-up of the main events of the year to show you that the Harry Winston world didn't stop during the past year! As usual during the SIHH week, I discovered the new Histoire de Tourbillon. For me, it was almost a shock! What a bulky watch! And what a strange shape! However, there was a special ... .

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