CVC Capital Companions may promote a considerable minority stake in Breitling SA, one of many final impartial watchmakers in Switzerland, in accordance with a Bloomberg report on Friday (Sept. 3).
The non-public fairness agency is contemplating the sale after curiosity from potential traders. CVC plans to maintain management of the watchmaker in any deal that will profit future progress and is in search of a long-term associate for Breitling, in accordance with sources cited within the article.
CVC representatives declined to touch upon the matter. Deliberations are stated to be nonetheless of their early levels.
Breitling is understood for its aviation-themed watches and traces its roots to the work of watchmaker Leon Breitling in 1884. Whereas many massive Swiss watch manufacturers have been acquired by rivals, Breitling has remained impartial.
CVC bought a serious stake within the firm in 2017 for $952 million, and has since simplified Breitling’s vary of merchandise. Additionally, CVC has expanded Breitling gross sales in Asia and campaigned to make watches that enchantment to girls in addition to males, Bloomberg stated.
Exports of Swiss watches have not too long ago begun to achieve their pre-pandemic ranges, thanks partially to demand from customers in China and the U.S., citing figures from the Federation of the Swiss Watch Business.
Learn extra: Luxurious Manufacturers See Alternatives to Broaden Put up-Pandemic
As PYMNTS reported final month, luxurious manufacturers try to get well within the wake of the COVID-19 pandemic.
Analysis by Bain & Co. discovered that the posh trade shrank by round 20% in 2020, with private luxurious items gross sales declining by 23%, the primary drop in additional than 10 years. In Might, Bain predicted that the market may return to pre-pandemic ranges later this yr, an enchancment from its earlier prediction of a 2023 rebound.
Nonetheless, it’s value recognizing that the delta variant may nonetheless throw a wrench into issues. PYMNTS surveys up to now a number of months have discovered customers much less and fewer optimistic about when life will return to “regular,” with many seeing the “finish” of the pandemic occurring within the early a part of subsequent yr.