Press Releases
Bulgari to acquire Daniel Roth, Gerald Genta and Manufacture de Haute Horlogerie. The Hour Glass appointed as exclusive Distributor for Asia.
Rome, Italy, June 28th, 2000: The Bulgari Group has reached an agreement with The Hour Glass - a Singapore listed Group – for the acquisition of 100% of Gerald Genta S.A., Daniel Roth S.A., Swiss leaders in high-end watch making, and Manufacture de Haute Horlogerie S.A., the owner of the related manufacturing facilities. The Memorandum of Understanding signed with The Hour Glass provides also for the appointment of The Hour Glass as the exclusive distributor of the two brands in the Asian markets. By buying two brands renowned for their complicated and collectors’ watches, Bulgari wants to combine their important know-how in high complicated watch making with its great experience in the watch business acquired in the past 25 years. The companies’ state of the art technology and manufacturing capabilities will allow the Bulgari Group to further develop its position as one of the leaders in the watch market, as well as to capitalise on significant production and distribution synergies. The total consideration for the acquisition of the companies, is equal to 37,6 million Swiss francs and is based on the book value of net assets of same as of 30.06.2000. As part of such consideration, The Hour Glass will receive 33% of the adjusted cumulative profit for a period of seven years with a minimum of 4,5 million Swiss francs. Francesco Trapani ,Chief Executive Officer of the Bulgari Group, commenting on the announcement said: “ I strongly believe that this acquisition will very much help Bulgari in its process of developing know-how in the complicated watches segment. Gerald Genta and Daniel Roth’s technical expertise together with our managing capabilities will create the perfect environment for further development and expansion of the two brands. We have great plans and are happy that The Hour Glass have chosen Bulgari as their partner in this operation”. Dr. Henry Tay – Executive Chairman of The Hour Glass – said: “I’m extremely excited over the prospects of entering into a commercial partnership with Bulgari to enhance and exploit the enormous potential of the Daniel Roth and Gerls Genta brands; particularly with Bulgari’s finacial strength, proven expertise in brand enhancement, product development and manufacturing know-how. The commercial partnership with The Hour Glass will also include 33% profit sharing of the Swiss Companies for a period of seven years from July 1st, 2000” Gerald Genta and Daniel Roth posted a turnover that exceeded 20 million Sfr in fiscal year ending March 31st, 1999. This result was heavily affected by the Asian crisis which gave start to a restructuring period. Based in the famous Swiss watch making region of Vaud, Le Sentier, the two companies were founded to satisfy a sophisticated clientele’s high expectations in terms of quality and performance when dealing with complicated timepieces. Gerald Genta have invented and created some new watch mechanisms – such as the first automatic tourbillon- and Daniel Roth have particular skills in creating and setting complicated mechanisms by single master craftsmen. In 1999, the Bulgari Group sold over 140.000 timepieces, confirming its position among the top companies in the prestige watch sector. Arthur Andersen Corporate Finance acted as financial advisor in this transaction.