FRANCE. LVMH Moët Hennessy – Louis Vuitton, the world’s leading luxury group, has signed an agreement to acquire Swiss watchmaking group Hublot.
LVMH will acquire Hublot from Founder Carlo Crocco and a company managed by Jean-Claude Biver since 2004. Crocco founded the Hublot group in 1980.
Hublot is a brand that is highly complementary to LVMH’s existing watch portfolio, according to the luxury goods powerhouse. Its portfolio currently comprises TAG Heuer, Swiss watch manufacturer Zenith, Dior Montres, Louis Vuitton watches sold exclusively in Louis Vuitton stores, as well as the watch collections of jewellers Chaumet, Fred and De Beers.
Strong growth potential
Hublot, which has its headquarters and workshops near Geneva, has started building a factory at Nyon to accommodate its expansion plans. Having grown at a rapid pace since 2004, the brand achieved net revenue of more than CHF150 million (US$147 million) in 2007. A very significant increase in revenue is expected in 2008, said LVMH.
Today, Hublot has a very selective distribution network which is limited to 300 stores worldwide. Its geographic footprint spans Switzerland, Spain, France, Germany, the US, Latin America, the Middle East, Russia, Japan, Hong Kong and Singapore.
The brand has recently been launched in China and India and is said to have strong growth potential in Asia, Japan, North America and in certain European markets.
“Exceptional” watches and chronographs
Hublot is said to offer a range of exceptional quality watches that are innovative and differentiated. The watches are a fusion of materials, from precious metals (such as gold and platinum), technological metals (titanium and tantalum), ceramics and diamonds to natural rubber.
The brand’s renowned “˜Big Bang’ collection includes models equipped with automatic movements, with prices ranging from €8,000 (steel and ceramic) to over €300,000. A new Big Bang collection for women was launched at the last Basel watch fair with “great success”, the company said. Hublot’s traditional classic line has also been redesigned recently using natural rubber, zircon, gold and ceramics.
Hublot Founder Carlo Crocco said: “I am happy that Hublot, an innovative brand since its creation, is joining the LVMH group, the world leader in luxury goods, whose creative passion is without any doubt a value that I have always shared.”
Jean-Claude Biver, the architect behind the success of the Big Bang collection and the recent strong growth of Hublot, commented: “I am delighted that Hublot will be able to benefit from LVMH’s support and strategic leadership in the luxury goods industry and so maximise its growth potential in the years to come. I am happy to be pursuing this adventure and to be able to contribute to the development of LVMH’s watchmaking division alongside Philippe Pascal.”
Philippe Pascal, who is Chief Executive Officer of LVMH’s Watches & Jewelry business group, added: “Hublot is a strategic and very complementary acquisition. Its high-end positioning, selective distribution, financial performance and growth potential make Hublot a “˜rising star’.
“Hublot will strengthen our Watches & Jewelry business group which, over the last three years, has been growing strongly. We are very happy that Jean-Claude Biver will, along with the management team of Hublot, continue on this remarkable journey and contribute his considerable expertise to our development in this promising sector.”
For more information, visit www.lvmh.com.
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