Last week, CVC Capital Partners agreed to acquire an 80 per cent stake in Breitling SA, a previously independent manufacturer of Swiss Watches.
While the terms of the deal have not been disclosed, a Bloomberg report estimated its value at $870 million. The transaction is expected to close in June, and is subject to approval by competition authorities.
Bloomberg’s report also noted that CVC will set its sights on bringing Breitling into the Chinese market. It added that the watchmaker’s 2016 sales totaled $424 million.
As one of the terms of this transaction, Théodore Schneider, current majority owner of Breitling, will re-invest for a 20 per cent stake in the company.
“I am convinced CVC is the right partner to elevate Breitling to the next level,” says Schneider. “CVC’s expertise, track record and international network will help unlock Breitling’s full potential.”
As of now, the London, England-based venture capital firm does not own any other watch or jewellery companies, making this investment a first for both parties.