The Bulgari Group has reached an agreement with The Hour Glass – a Singapore listed Group – for the acquisition of 100 % of Gerald Genta SA, Daniel Roth SA, Swiss leaders in high-end watch making, and Manufacture de haute horlogerie SA, 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 June 30, 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.
Gerald Genta and Daniel Roth posted a turnover that exceeded 20 million Swiss francs in fiscal year ending March 31, 1999. This result was heavily affected by the Asian crisis which gave start to a restructuring period.
July 05, 2000