(Bloomberg) — Companions Group Holding AG plans to extend its stake in Breitling AG to a majority in a deal that will worth the storied Swiss watch maker at greater than 4.2 billion Swiss francs ($4.5 billion), based on folks conversant in the matter.
The Swiss funding group is in talks to spice up its stake to greater than 50% from about 23%, mentioned the folks, who requested to not be recognized discussing confidential data. Personal fairness agency CVC Capital Companions is ready to cut back its majority possession to about 20%, with administration and different personal traders proudly owning the remaining, the folks mentioned.
The valuation assigned to Breitling beneath the possession reshuffling underscores a dramatic turnaround for the watch model orchestrated by Chief Government Officer Georges Kern. Recognized for its Navitimer chronographs, Breitling was valued at about 800 million francs when CVC bought a majority stake in 2017 and about 3 billion francs when Companions first invested in 2021.
The plans to realize a majority stake and probably promote Breitling shares on the Swiss Inventory Change in 2027 had been reported earlier by Finews, which didn’t embrace a valuation. Representatives for CVC, Companions Group and Breitling declined to remark.
Based in 1884 by Leon Breitling, the model’s gross sales rose 40% to about 700 million francs in 2021, based on Morgan Stanley estimates. Gross sales had been up one other 25% this 12 months on the recognition of Breitling’s Navitimer, Chronomat and Superocean fashions, Bloomberg Information reported in October.
Breitling’s common promoting worth has risen as the corporate makes use of extra gold, treasured stones and metals in addition to in-house developed actions. Model ambassadors have included Hollywood stars John Travolta, Adam Driver and Charlize Theron.
Demand for luxurious Swiss watches surged throughout the pandemic with exports hitting a document 22.3 billion francs in 2021. The business is on observe for one more document this 12 months with the US overtaking China as the highest vacation spot for Swiss timepieces.
(Provides element on Breitling watches in sixth paragraph. An earlier model of this story corrected a misspelling of Finews.)
©2022 Bloomberg L.P.
