Watches of Switzerland Group has completed the acquisition of the Italian jewelry brand Roberto Coin for £104 million (approximately $130 million).
This transaction bolsters Watches of Switzerland’s presence in the luxury branded jewelry market, particularly in North America.
Strategic Expansion and Financial Details
The acquisition, which includes exclusive distribution rights and ownership of Roberto Coin’s business in the U.S., Canada, Central America, and the Caribbean, is financed by a £92.2 million ($115 million) term loan facility.
The acquisition not only expands Watches of Switzerland’s portfolio but also capitalizes on its existing network of 222 retail outlets in the U.K., U.S., and Europe. In 2022, Roberto Coin Inc. reported revenues of $146.2 million and a pre-tax profit of $30.1 million, indicating strong financial performance.
Operational Synergies and Growth Opportunities
“We believe there is a significant opportunity to leverage our proven retail expertise in luxury branded jewelry.
The luxury branded jewelry category has consistently outperformed the wider jewelry sector, and we see further strategic and operational opportunities for the business within the broader group. We are committed to our new wholesale partners and excited to work with them and help them grow with Roberto Coin.”
Plans for integration include expanding Roberto Coin Inc.’s wholesale business, increasing the brand’s presence among independent retailers, and potentially developing mono-brand boutiques and franchise stores. Duffy noted, “This will allow us to enhance the growth and market presence of Roberto Coin in North and Central America.”
Brian Duffy, CEO of Watches of Switzerland, commented on the acquisition’s alignment with the company’s strategy.
Continued Brand Independence and Leadership
Despite the change in ownership, Roberto Coin will continue to operate as an independent entity within Watches of Switzerland Group. The Coin family will maintain a presence on the company board, with Peter Webster, cofounder of Roberto Coin, continuing as president of the jewelry brand.
Brian Duffy highlighted the longstanding partnership, stating, “We have partnered with Roberto Coin for over a decade in the US, retailing its elegant jewelry in a number of our Mayors showrooms. It is a well-regarded, growing brand with a strong market position.”
Industry Implications
This acquisition again highlights the trend in the luxury market towards consolidation and brand-centric retail strategies. It underscores the importance of branded jewelry within the broader luxury sector and indicates potential growth areas for jewellers aiming to align with well-established and financially robust brands.
This strategic acquisition by Watches of Switzerland represents a significant investment and a focused approach to expanding its luxury jewelry offerings in competitive international markets.
