Partners Group secures minority stake in Breitling

CVC and the management team will remain invested in the business.

Partners Group said in a statement that key value creation initiatives will include growing direct-to-consumer sales channels, expanding Breitling's own retail network – particularly in Asia and the US – and continuing to improve operational efficiency.

Pantheon co-founder Alfred Gantner will join the board of Breitling.

CVC agreed to acquire an 80% stake in the then-family-owned Swiss watchmaker in early 2017. Although details of the financing remained confidential, multiple press sources at the time suggested the total valuation could be in the region of EUR 800m.

CVC is invested in the business via its CVC Capital Partners VI vehicle. The GP closed its sixth fund in mid-2013 on EUR 10.5bn.

The 2017 deal was to be funded by a CHF 375m (EUR 340m) cov-lite debt package arranged by Bank of America Merrill Lynch, BNP Paribas, Credit Suisse, Deutsche Bank and UBS.

In September this year, Bloomberg reported that CVC was considering the sale of a stake in Breitling after receiving interest from potential investors, adding that the private equity firm was working with advisers at Rothschild and GCA Altium.

Company
Breitling is an independent manufacturer of luxury watches, headquartered in Grenchen, Switzerland. The company was founded in 1884 by Léon Breitling who played a key role in the development of the chronograph in a wrist watch.

The company has two manufacturing facilities in Grenchen and La Chaux-de-Fonds, and distributes its watches to selected boutiques and retailers worldwide.

A March 2021 report by Morgan Stanley and LuxeConsult estimated Breitling's turnover in 2020 to be CHF 479m.

People
CVC Capital Partners – Alexander Dibelius (managing partner).
Breitling – Georges Kern (CEO).

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• Topics
• Expansion
• Exits
• Consumer
• DACH
• Partners Group
• CVC Capital Partners