Watches of Switzerland Group PLC (LSE:WOSG) has made “an acquisition consistent with the stated strategy of a target ripe for further development” with the purchase of luxury jewellery brand Roberto Coin, according to Jefferies analysts.
FTSE 250-listed Rolex merchant WOSG announced the acquisition of Roberto Coin for $130 million (£104 million), marking a strategic move into the luxury jewellery sector.
“The acquisition builds on the group's proven capabilities in showcasing luxury brands across both watches and jewellery and will significantly enhance our strategic positioning in the luxury branded jewellery category in the US,” WOSG said in a statement.
Jefferies said: “We look forward to further details emerging at next week's finals… before embedding Roberto Coin in our model.”
The deal should be “a nicely accretive operation” and the cash payback ”should be commensurately attractive”, analysts added.
Roberto Coin, which holds exclusive rights to import and distribute Roberto Coin jewellery across the US, Canada, Caribbean, and Central America, achieved annual revenue of $146.2 million and a profit before tax of $30.1 million for the financial year ending December 31, 2022.
"We look forward to benefiting from their wealth of luxury retail and digital experience to unleash the growth potential of the Roberto Coin brand across our chosen markets," said founder and chief executive Roberto Coin.
Roberto Coin jewellery is currently available in 16 WOSG showrooms in the US.