Shares in Watches of Switzerland Group PLC (LSE:WOSG) ticked 5.7% higher after it completed the acquisition of a Texas-based luxury retailer, adding four Rolex-anchored showrooms to its US network.
Family-owned Deutsch & Deutsch operates showrooms in El Paso, Laredo, McAllen and Victoria, all of which are authorised distributors of Rolex, Cartier, OMEGA, TUDOR and other luxury brands.
Two sites have recently undergone significant refurbishment, with further upgrades planned.
Watches of Switzerland said the deal is expected to deliver attractive financial returns. For the year ending 31 December 2024, the acquired locations generated revenue of $67 million, with profitability in line with the group’s existing US retail business.
Following the deal, which was announced after markets closed on Thursday, WoS now operates 25 Rolex-anchored showrooms in the US.
Under the deal, the FTSE 250-listed retailer has bought 88% of Deutsch & Deutsch, with an option to acquire the remainder. The stores will continue trading under the Deutsch & Deutsch name, with Tad and Aladar Deutsch remaining in leadership roles.