As we’ve simply entered the LVMH Watch Week, the opposite French luxurious powerhouse, Kering (ex-PPR) has simply introduced the finalisation of the administration buy-out of Girard-Perregaux and Ulysse Nardin, thus promoting its watch actions to the present administration of the manufacturers. Following some talks that began a couple of months in the past, it’s now confirmed that Sowind Group SA, the umbrella above GP and UN, is out of the portfolio of Kering. The transaction, which has been performed by the present CEO of each manufacturers, Patrick Pruniaux, must be finalised this summer season.
As a reminder, Kering Group is a French conglomerate specialised in luxurious items, majorly owned by François-Henri Pinault. Below this umbrella are manufacturers comparable to Balenciaga, Bottega Veneta, Boucheron, Gucci or Yves Saint Laurent. Up till now, the group was additionally concerned in watchmaking. In 2011, Kering took a majority stake in Girard-Perregaux (in addition to the now-defunct model JeanRichard, owned by the identical firm Sowind Group SA). Then, in 2014, Kering acquired Ulysse Nardin. In 2017, the group named Patrick Pruniaux on the head of Ulysse Nardin, and a yr later on the head of GP too.
As we speak, Kering has introduced promoting its 100% stake in Sowind Group SA (incl. GP and UN manufacturers) to its administration, underneath the steerage of Patrick Pruniaux. This marks a brand new period for the watchmaking group and its independence. It additionally marks an vital step within the enterprise of Kering, which by the way drops all watchmaking actions from its portfolio of manufacturers (excluding watches produced by Gucci). The sale of the businesses to the board of administrators is anticipated to be accomplished the top of the primary half of 2022. No phrase has been given but concerning the value of the transaction or the involvement of third-party traders to again up the administration buy-out.
Pruniaux declared that “on the sound foundations laid because of Kering’s assist and investments, now we have the precise setup and sources to implement a plan able to guaranteeing the long-term growth of each manufacturers.” We’ll actually look carefully at how the 2 manufacturers will evolve through the years.
Extra particulars at kering.com.