Harry Winston sold the watch and jewelry brand Swatch

Beijing on the evening of January 14, the world’s top jewelry brand, known as the “King of Diamonds” Harry Winston Diamond (NYSE: HWD) announced on Monday that it has agreed to jewelry watch and jewelry brand for $ 1 billion sold to Switzerland’s largest watch maker Swatch Group (Swatch Group).
This will help expand the supply of Swatch’s luxury make Harry Winston able to focus on their diamond mining operations.
According to the agreement, the Swatch will Harry Winston to pay $ 750 million in cash and will assume debt of up to $ 250 million.
Acquired, including Harry Winston’s production company in Geneva. Robert Gannicott, chairman of Harry Winston, said his company will global market supply rough diamonds and renamed Dominion diamond company.
Gannicott said: “When we acquired the Harry Winston brand, diamond resource investment opportunities are extremely rare and expensive … today has a series of diamond resources investment opportunities, and the legacy of luxury brand value has been substantial growth in this The transaction represents a steady return on our original investment. ”
The transaction is subject to regulatory approval, the transaction is completed, Harry Winston More than 500 employees will join Swatch.
In October last year, reported that Harry Winston is considering the sale of its of jewelry watches for women and jewelry business, to focus on their diamond mining business, and is working with the French luxury goods group LVMH Moet Hennessy (LVMH) and PPR (Paris Spring ) approached potential buyers.
Harry Winston is one of the few jewelry manufacturers to enter the mining industry to ensure that the origin of diamonds. The joint venture between the company, and Rio Tinto (RIO), the two sides have, respectively, 40% and 60% of Canada’s largest diamond mine Diavik stake. In November last year, Harry Winston has also announced that the acquisition will be $ 500 000 000 BHP Billiton (BHP), the oldest diamond mine in Canada, the EKATI the 80% equity interest.
Terms of sales, Swatch is the world’s largest watch manufacturer, up to 81 billion Swiss francs in sales last year. The CEO Nick Hayek said in an interview with Reuters, the Harry Winston brand could generate sales of more than 1 billion Swiss francs (about $ 1.1 billion), as well as 250 million Swiss francs in 4-5 years the net profit.
The acquisition will allow Swatch to enter the high-end jewelry market is currently dominated by the Richemont Group (Richemont). Hayek said: “watch sales continued is generally substantial growth as 2012, then in 2013 to achieve sales of 90 billion Swiss francs your fingertips., Including the acquisition, sales will increase by more.”
Swatch renamed Dominion diamond company will continue to cooperate through a diamond purchase transactions. The two companies will also consider the possibility of the formation of a joint venture diamond polishing company