Update: LVMH to buy Swiss watchmaker Hublot
Dow Jones – 04/24/2008
(Adds comment from LVMH Financial Director, details)
PARIS (Dow Jones)--French luxury giant LVMH Moet Hennessy Louis Vuitton SA (LVMUY) Thursday unveiled plans to buy high-end Swiss watchmaker Hublot group. In an e-mailed statement, the world's largest luxury group said the Hublot brand, which has recently been introduced in China and India, will complement LVMH's watch brands TAG Heuer, Louis Vuitton, Dior Montres, as well as watches sold under jewelry brands Chaument, Fred and De Beers.
The group declined to provide financial details on the transaction but LVMH Financial Director Jean-Jacques Guiony said Thursday the price paid reflected more reasonable multiples than other acquisitions the group has made in the recent past. Guiony said the price was around two times Hublot's estimated revenues in 2008, but did not provide the company's estimate of 2008 sales.
LVMH was advised by Michel Dyens & Co. on the transaction.