Richemont adds sparkle to its watches by snapping up VVSA

 
City A.M. Reporter
RICHEMONT, the luxury goods group behind Cartier, Jaeger-LeCoultre and IWC, has snapped up Swiss watch parts maker Varin-Etampage and Varinor (VVSA) for an undisclosed sum.

VVSA, a long-term partner of Richemont, makes metal parts for high-end watches and jewellery.

Richemont said it would benefit from VVSA’s “established technical know-how and state-of-the-art equipment”.

The company’s management team will stay in place and continue to serve other existing clients, Richemont added in a statement, and its 250 employees are expected to remain on board.

The transaction will have no significant impact on Richemont’s net assets or profitability for the current financial year.

Swiss-listed shares in Richemont closed two per cent higher at SFr58.65, outperforming Switzerland’s stock index.