Under the terms of the deal, Gucci Group will acquire 85% of the Bédat business. Mme Simone Bédat will be Chairman of the Board, while her son Christian will continue in his role as Chief Executive and will remain a shareholder in the business. BEDAT & Co was founded in 1996 by Christian and Simone Bédat, based upon many years of experience in the Swiss watch sector. The brand has grown rapidly in the US on the back of the elegance, quality and exclusivity of its timepieces. The basic Bédat models are priced around the $4,000 - $5,000 range, while more exclusive pieces are priced as high as $30,000.
Distribution is currently through a very limited number of doors with select speciality retailers primarily in the US and Geneva. Sales of the Bédat group are expected to be around CHF 20 million in 2000. With the support of Gucci Group, the major markets of Japan, Europe and the rest of Asia will be targeted in the next few years, in addition to expanding upon the selective US presence.
Domenico De Sole, President and Chief Executive Officer of Gucci Group N.V., said, “Our partnership with Christian Bédat and Mme Simone Bédat is a wonderful opportunity for Gucci Group.
They have created a very vibrant young brand in the luxury timepieces arena, and the prospects for developing this brand worldwide in partnership with Gucci Group are excellent. The strategic logic is compelling – the Bédat business increases our presence in luxury timepieces and extends the scope and positioning of our existing timepieces portfolio, which already includes the luxury fashion timepiece businesses of Gucci and Yves Saint Laurent as well as the Place Vendôme jeweller Boucheron.
Moreover, the entrepreneurial flair and depth of watch sector expertise of the Bédat team is highly valuable for our Group.”
Tom Ford, the Creative Director for Gucci Group, added his welcome to Christian and Simone Bédat by noting “The BEDAT & Co. watches are extremely elegant and well-conceived. There is great creative talent in the Bedat team, in addition to evident business acumen and energy.”
Mme Bédat said, “From our first meeting with Gucci Group, we knew immediately that they would be the ideal partner for us.
I have felt in the Gucci Group a shared spirit. There could be no better way to build on the work that we have done. I am very happy.”
Christian Bédat added, “We are honoured and excited to be working with the Gucci Group, a company with a great history and a wonderfully creative culture. Our decision to join forces with the Gucci Group was based heavily upon the character and dynamism of the people in the Gucci organisation – pure and simple.”
The financial terms of the transaction were not disclosed.
The impact of the transaction on Gucci’s current and near-term earnings per share is not expected to be material.
