Kering looking at exclusive watch brand Richard Mille

Up to 400
million Swiss francs

Earlier
Kering already bought jewellery brands Pomellato and Qeelin and now the group is clearly
ready to take the next step in expanding its jewellery business: it has its
eyes set on Richard Mille, a fairly young brand of watches (founded 2011),considered to be one of the most expensive in the world.

For a
Richard Mille you easily pay 60,000 euro, while the most expensive watch costs 1.3
million euro. Kering values the brand at 340 to 400 million Swiss francs, 2.5
to 3 times the expected sales for 2013.

Richard
Mille rising star in watch sector

Kering
would start with a share of 51 percent, with the possibility to expand it
further in the future. The role of CEO would go to founder Richard Mille, who
would become a minority shareholder.

Even in times
of crisis, things are going smoothly for Richard Mille: the company was one of
the biggest growers in the sector in 2012. Furthermore it is one of the most
profitable companies in the “haute horlogerie” and it leaves companies as
Swatch and Richemont far behind.

PPR now
officially Kering and luxury holding

PPR, which
stood for Pinault-Printemps-Redoute, evolved from a retail and mail order group
to a luxury company with new assets such as Gucci, all under the leadership of
founder and CEO François-Henri Pinault. In 2006 department store chain
Printemps was sold and at the end of 2013 La Redoute will also change owners.

Pinault’s
holding Artemis will remain 39 percent owner of Fnac, which is undergoing a
renewal, for three more years. For every PPR-share in their portfolio
shareholders get a Fnac-share.

The name
Kering has already been approved by 99 percent of shareholders and with that
the name change is official. It also emphasises the definitive change of course
of the company towards luxury and sportive lifestyle brands.