Swatch acquires acquires Canadian watchmaker Harry Winston

Swiss watches and jewellery maker The Swatch Group Ltd has inked an agreement to acquire the luxury brand diamond jewellery and timepiece division of Canada’s Harry Winston Diamond Corp (TSE:HW), the parties said on Monday.

The price tag of the takeover is USD750m (EUR560.4m), plus the assumption of up to USD250m of pro-forma net debt. Swatch will acquire US-based HW Holdings Inc and its unit Harry Winston Inc, as well as the production company in Geneva, Switzerland. It will add the business’ 535-strong global workforce.

The deal, which has yet to obtain the requisite regulatory approvals, does not include the mining business of Harry Winston Diamond Corp, which in connection with the transaction, has agreed to be renamed Dominion Diamond Corp.

The target is viewed as complementary to Swatch’s prestige segment, the buyer’s chariwoman Nayla Hayek noted.

The move represents a sound return on the original investment in the Harry Winston brand, the vendor’s CEO Robert Gannicott said.

Rothschild served as advisor to Harry Winston Diamond Corp on the deal.