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Swatch to Spend $1 Billion to Buy Prestigious Brand

Harry Winston Diamond will change its name after the sale


Swatch Group (PINK:SWGAY) announced on Monday that it will purchase the Harry Winston brand of watches and jewelry for about $1 billion.

Under the terms of the deal, Swatch will pay $750 million in cash and should an additional $250 million in debt to acquire the brand from Canada-based Harry Winston Diamond Corp. (NYSE:HWD), which will change its name to Dominion Diamond Corporation after the sale is completed, the Associated Press noted.

Gap to Buy Luxury Fashion Retailer
Gap to Buy Luxury Fashion Retailer

On the news, shares of Harry Winston Diamond surged more than 8% in Monday trading, rising above $15 a share, while shares of Swatch Group climbed almost 3% in over-the-counter trading.

European and Canadian regulators will have to approve the purchase.

The largest watch-maker in Switzerland, Swatch will acquire 500 employees as well as Harry Winston’s manufacturing plant in Geneva in the acquisition. Swatch employs about 29,000 workers worldwide and owns a wide array of luxury watch brands, including Breguet, Omega, Longines, Mido, Blancpain, Tiffany Watch and Tissot.

Article printed from InvestorPlace Media,

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