PPR announced the signature of a long-term strategic partnership with the Sowind Group, a Swiss holding company based in La Chaux de Fonds headed by Luigi Macaluso. The Sowind Group includes the Haute Horlogerie brands Girard-Perregauxand Jean Richard, a Research and Development Centre, as well as Sowind Manufacture, maker of high-end watch movements. Under the partnership, PPR will own a 23% interest in the Sowind Group, with the possibility of increasing its stake under the terms of a shareholders’ agreement. Mr. Macaluso will retain control of the company.
This strategic partnership represents the materialisation of a shared vision between the two partners regarding long-term growth prospects in the Haute Horlogerie segment. It will allow PPR and Girard-Perregaux to combine their know-how and knowledge base in terms of R&D, design, brand management, distribution networks and sourcing. Mr Macaluso will join the Gucci Group Management Committee and the Boucheron Board of Directors. François-Henri Pinault and Robert Polet will become Directors on the Sowind Board.
This long-term agreement offers Girard-Perregaux, one of the last independent, high-end Swiss watch “Manufactures”, and the Jean Richard brand the means to fully exploit their potential for growth and innovation by teaming up with one of the major players in the luxury goods industry. As for PPR, the agreement confirms the Gucci Group’s goal of building a strong presence in the Haute Horlogerie segment, one of the most promising luxury goods markets. The Gucci Group brands will thus benefit from outstanding watch-making expertise and will extend their sourcing for timepiece components.
François-Henri Pinault, Chairman and CEO of PPR, declared: “I am pleased that the bonds between our two groupsare being strengthened, as we build a joint future in one of the most prestigious sectors of the luxury goods business. The PPR and Sowind groups share the same entrepreneurial values passed on through long family tradition.I have a great admiration for Girard-Perregaux, a brand founded in 1791 whose identity and worldwide influence is exceptional.”
Luigi Macaluso, Chairman and CEO of the Sowind Group, stated: “I am extremely pleased to be able to work with a major group like PPR and, specifically, with the Gucci Group. This will be a truly rewarding experience. Our varied and complementary skills are based on common values of excellence. This agreement will mean new synergies and new long-term projects.”
Robert Polet, Gucci Group CEO, said: “This is a tremendous opportunity for our brands to be in contact with the greatest watch-making expertise of Sowind. We are convinced that this
agreement will create a number of important synergies for our watch brands and their further development."
(Press Release)
Image: Clyde94, CC BY-SA 4.0, via Wikimedia Commons.
