Francois-Henri Pinault, CEO of the French luxury conglomerate, Kering, has recently announced his company’s acquisition of Ulysse Nardin. Famed for its intricate designs, in-house movements, and pioneering in the use of silicon components, Ulysse Nardin is a legend in the Swiss watchmaking industry. According to Pinault, the addition of this brand will not only be highly profitable initially, but will continuously foster revenue for years to come. Kering’s CFO, Jean-Marc Duplaix, and Managing Director, Jean-Francois Palus, stated the price paid for Ulysse Nardin’s procurement was thirteen times its 2013 earnings before taxes and other debt. After reckoning, the numbers come to around $3.250 billion.
Hitherto, Ulysse Nardin had not entered the booming Asian markets. Now, under new ownership, the manufacturer will finally have that opportunity. In addition to Ulysse Nardin, the Kering Group owns various other producers of luxury goods, such as Girard Perregaux, Brioni, Gucci, Bottega Veneta, Jeanrichard, Balenciaga, just to name a few.
Luke Rottman (Executive Editor: thewatchadviser.com)