Shares in the London-listed retail group lifted after it confirmed the deal, which comes amid a strategy to grow the luxury branded jewellery operation
Watches of Switzerland has bagged the Italian jewellery gem Roberto Coin in a £104 million deal.
The London-listed luxury retailer’s shares soared following the announcement, signalling a move to expand its high-end jewellery brand portfolio. The retail giant, which also boasts ownership of the Goldsmiths and Mayors jewellery chains, plans to “leverage its operational and retailing expertise” to propel the newly acquired brand’s growth.
Watches of Switzerland is setting up a new loan facility worth $115 million (£92.2million) to finance the deal. Founded in 1996 in Vicenza, Italy, Roberto Coin has sparkled its way to becoming the sixth largest jewellery brand in the US by sales.
With an annual revenue of $146.2million (£117.2million) and a pre-tax profit of $30.1million (£24.1million) last year, the brand is a lucrative addition to the Watches of Switzerland collection. Brian Duffy, chief executive of Watches of Switzerland, 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.”
He added, “We believe there is significant opportunity to leverage our proven retail expertise in luxury branded jewellery. Today’s strategically and financially attractive acquisition is indicative of our ambition and the momentum we are building in this exciting category.”
“It will allow us to take one of the fastest growing jewellery brands in the US and use our retail and operational expertise to accelerate growth and further elevate the Roberto Coin proposition in North and Central America.”
Roberto Coin, founder and chief executive of the eponymous brand, said: “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.”
“We look forward to benefiting from their wealth of luxury retail and digital experience to unleash the growth potential of the Roberto Coin brand across our chosen markets.”