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Harry Winston to Sell Luxury Brand to Swatch for $1B
Jan 14, 2013 1:59 AM
By Dilipp S Nag
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RAPAPORT... Harry Winston Diamond Corp. has agreed to sell its diamond jewelry and timepiece division to The Swatch Group for $1 billion. Harry Winston will generate $750 million in cash from the sale, while Swatch will assume the repayment of $250 million (in pro forma net) debt for Harry Winston.
“This transaction represents a sound return on our original investment,” said Robert Gannicott, the chairman and CEO of Harry Winston. “It will leave us well equipped to realize upstream opportunities in an environment where cash has become a strategic resource while preserving and expanding our relationship with the downstream diamond business.”
Harry Winston supplies rough diamonds to the global market from its 40 percent stake in Canada’s Diavik diamond mine and in November agreed to buy the Ekati diamond mine from BHP Billiton for $500 million. The company also sources polished diamonds from other companies.
When the transaction closes, Harry Winston will change its name to Dominion Diamond Corp.
Harry Winston stated that it would maintain a polished diamond sourcing relationship with Swatch Group and that the two companies would also explore opportunities for a joint diamond-polishing venture.
"Harry Winston brilliantly complements the prestige segment of the group,” said Swatch Group's chair, Nayla Hayek. “We are proud and happy to welcome Harry Winston to the Swatch Group family.”
Harry Winston runs its luxury retail division from New York under the name Harry Winston Inc. The company currently operates 21 boutiques
and four licensed showrooms in key locations in New York, Paris,
London, Beijing, Shanghai, Hong Kong, Singapore, Tokyo and Beverly
Hills, among others. The company has more than 190 points of
distribution for its exclusive line of timepieces,
according to its website.
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Tags:
diamond, Dilipp S Nag, Dominion Diamond, Harry Winston, Jewelry, luxury, Rapaport, Robert Gannicott, swatch group
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