News The Franck Muller watch brand has recently made two acquisitions in the component field. The Geneva-based luxury watchmaker took over Linder, a maker of top quality dials, and Pignons Juracie SA which specializes in gear wheels and pinions.
"The purpose of these transactions is to strengthen our independence in face of the strategy of the big groups which are buying up component makers”, Franck Muller pointed out. He has acquired 66% of the capital of Linder based in Le Locle (NE). "We intend to relocate manufacturing to Bois (JU) in a bigger building. The purpose of this acquisition is to increase the scale of this activity”. In two to three years time, production will increase from 250,000 to 400,000 pieces.
The Geneva group also took control of Pignons Juracie SA established at Lajoux (JU). This is one of the three last makers of top quality pinions and gear wheels in Switzerland. “This operation is a strategic investment which reflects our determination to develop our own movements”. The Geneva-based creator also intends to preserve its own expertise and avoid copies. “We have created a design and manufacturing unit for movements in which we have invested several million francs to acquire sophisticated machines”. The unit employs five staff and is designed to safeguard the company’s independence in component procurement.
Franck Muller also plans to develop its brand portfolio. With that end in view, the group acquired at the end of August the assets, including a retail outlet, of the Genevan manufacturer Mahara Montres (MHR). These “middle range” watches will benefit from new design.
The Franck Muller Watchland group currently employs 200 persons. In the long run its staff will be increased to around 380. It expects to achieve further growth in excess of 30% this year with 24,000 pieces sold against 16,500 in 1999. Last but not least, it is pursuing its commercial expansion by opening its own boutiques. The next scheduled opening will be in Milan in early November, followed by New York and Seoul in February 2001.
November 06, 2000
