Luxury retailer Watches of Switzerland Group has bought the Italian jewellery brand Roberto Coin for $130m (£104m).
The timepiece vendor, which comprises brands like Watches of Switzerland, Mappin & Webb, Goldsmiths and Mayors, said that the acquisition will help it fulfil its growth strategy to “trend within the global luxury jewellery market towards branded jewellery”.
The acquisition was financed by a new $115m loan, increasing the group’s leverage to 0.8x Net Debt, which will leave the firm at the mid-point of its full year leverage guidance, the group said.
Roberto Coin, which Watches of Switzerland has worked with in a partner capacity for over a decade, was founded in Italy and is currently the sixth largest brand in the US by sales and retail, selling to major department stores, chains and independent retailers.
It will continue to operate as an independent, standalone company within the Watches of Switzerland stable, the group confirmed, and the founding Coin family will retain a seat on the firm’s board. Peter Webster, who co-founded and led the brand for nearly 30 years, will retain his role as president.
Watches of Switzerland will hope the purchase will help it to turn round what has been a difficult start to the year for the group as it struggles amid a wider slowdown in demand for luxury goods.
At the start of 2024, it had to lower its guidance for the year, prompting a 30 per cent collapse in its share price.
Brian Duffy, CEO of Watches of Switzerland Group, said: “We have partnered with Roberto Coin for over a decade in the US, retailing its elegant jewellery in a number of our Mayors’ showrooms. It is a hugely popular, growing brand, occupying a strong position in the market, underpinned by product quality, design creativity and imagination.”
Roberto Coin, founder and CEO o f Roberto coin, said: “”Today’s announcement marks a significant step change in the development of Roberto Coin Inc.
“Roberto Coin is synonymous with design creativity, diversity, innovation and imagination. We are delighted to have partnered with the Watches of Switzerland Group, who have a real understanding and appreciation of our unique, world-class brand and products, and can accelerate our retail strategy in North and Central America.”
The firm is hosting a conference call and presentation at 10 30 BST today (Thursday) for investors and analysts.