Watches of Switzerland Acquires Roberto Coin in $130m Deal

Watches of Switzerland (LON: WOSG) has made a significant stride in its luxury branded jewellery strategy with the acquisition of Roberto Coin Inc. for a total consideration of $130 million. 

The transaction, completed on May 8, 2024, sees the company make inroads into the upscale jewellery market. 

Of the $130 million, $10 million is deferred for one year and contingent on the future profitability of the acquired business. In addition, WOSG said the deal was financed via a new $115 million term loan facility.

Roberto Coin, founded in the Italian city of Vicenza, designs and manufactures handcrafted jewellery. With Roberto Coin ranking as the sixth largest jewellery brand in the US by retail sales value, this acquisition positions Watches of Switzerland to further solidify its presence in the competitive luxury jewellery sector.

The acquisition of Roberto Coin Inc. provides Watches of Switzerland with exclusive, perpetual rights to import and distribute Roberto Coin jewellery across the US, Canada, the Caribbean, and Central America. 

Brian Duffy, CEO of Watches of Switzerland Group, expressed excitement about the acquisition, highlighting the brand's popularity, quality, and growth potential. The integration of Roberto Coin Inc. into the Group's operations is expected to enhance profitability and drive earnings per share accretion.

Roberto Coin, the founder and CEO of Roberto Coin, also expressed enthusiasm about the partnership, citing Watches of Switzerland's understanding of the brand's unique essence and its capability to propel growth in North and Central America.