CVC Capital Partners has agreed to acquire an 80% stake in Breitling SA, a family-owned manufacturer of Swiss luxury watches and an internationally renowned premium brand. The transaction values the company at approximately €800 million or $873 million. Théodore Schneider, the company’s current owner, will re-invest capital from the transaction and he will own a 20% equity stake in the company.
Breitling specializes in the development and manufacture of high-performance watches that are sold worldwide in exclusive boutiques and via selected retailers. The company employs approximately 900 people and operates two Swiss manufacturing facilities, one in Grenchen (headquarters) and one in La Chaux-de-Fonds (www.breitling.com).
The company was founded by Leon Breitling in the Swiss Jura Mountains in 1884 and today Breitling is one of the last sizeable Swiss watch labels still owned by a family after a wave of consolidation from the 1990s led to the emergence of leaders Swatch Group, Richemont and LVMH. Breitling had revenues of approximately $423 million in 2016.
“Using our network and expertise, CVC will work to make this global, iconic brand even more renowned and help shape the future of one of Switzerland’s last independent watch manufacturers,” said Daniel Pindur, Senior Managing Director at CVC. “Specifically, we see significant growth potential for Breitling in both existing and new geographies by driving the digitization of the marketing and distribution channels in the company, helping to enrich the product and customer experience.”
“I am convinced CVC is the right partner to elevate Breitling to the next level,” said Mr. Schneider. “CVC’s expertise, track-record and international network will help unlock Breitling’s full potential.”
CVC Capital Partners currently manages over $50 billion of assets and funds managed or advised by CVC are invested in 52 companies worldwide. The firm, founded in 1981, is based in London and has a network of 24 offices and 340 employees throughout Europe, Asia and the United States (www.cvc.com).
“Breitling has a proud heritage, high brand awareness, and enjoys an excellent reputation as one of the finest watchmakers in the world,” said Alexander Dibelius, Managing Partner and Head of Germany at CVC. “We very much look forward to working with Théodore Schneider as we embark on Breitling’s next chapter of growth.”
The acquisition of Breitling will be made through CVC’s sixth fund, CVC Capital Partners VI, which closed with €10.5 of capital in 2013.
This transaction is expected to close by the end of June 2017.
© 2017 Private Equity Professional | April 28, 2017