Watches of Switzerland has acquired US-based media company Hodinkee, specialising in luxury wristwatches, to enhance its online presence.
- The acquisition aligns with the company’s objectives to expand its digital market reach.
- Hodinkee’s 22.2 million unique visitors and over a million social media followers offer a significant audience.
- The acquisition will integrate Hodinkee’s activities and insurance services into Watches of Switzerland’s operations.
- The deal is financed through existing facilities without significantly impacting financial leverage.
Watches of Switzerland, a prominent London-listed luxury watch retailer, has strategically acquired the influential New York-based media company Hodinkee for an undisclosed amount. This acquisition is part of Watches of Switzerland’s broader strategy to expand its presence in the online luxury watch market, particularly within the United States. Hodinkee is renowned for its editorial emphasis on both new and vintage wristwatches, boasting a substantial engaged audience comprising 22.2 million unique annual visitors to its website and a following exceeding one million across various social media platforms. The integration of Hodinkee is expected to significantly enhance Watches of Switzerland’s ability to access and engage a deeply connected luxury watch enthusiast community.
In a formal statement, Brian Duffy, the CEO of Watches of Switzerland Group, expressed his admiration for Hodinkee, highlighting the longstanding respect for Hodinkee’s founder Ben Clymer and his team’s accomplishments in establishing a premier destination for luxury watch aficionados. Duffy remarked, “We have been avid followers of Hodinkee for many years and have long respected Ben and his team’s success in creating the undisputed destination for luxury watch enthusiasts.” This mutual respect is reciprocated by Ben Clymer, who emphasised how Watches of Switzerland has been a disruptor in the watch retail sector, akin to Hodinkee’s innovation in the domain of watch editorial coverage.
Following the completion of the transaction, Hodinkee will see the incorporation of its commercial activities, which include exclusive luxury watch limited edition collaborations, into the Watches of Switzerland framework. This integration includes a redirection of Hodinkee’s retail traffic towards Watches of Switzerland’s US ecommerce platform, thereby streamlining operations and enhancing market reach. Additionally, Hodinkee’s insurance agency, which partners with the global insurance leader Chubb to provide coverage for luxury watches and jewellery, will form part of the acquisition, adding another dimension to Watches of Switzerland’s service offerings.
The financial structure of this acquisition is leveraged through Watches of Switzerland’s existing financing facilities, ensuring that the transaction does not substantially alter the company’s leverage position. This strategic move is indicative of Watches of Switzerland’s commitment to solidifying its market position and expanding its service offerings in a competitive luxury watch market.
This acquisition marks a significant step for Watches of Switzerland, broadening its digital footprint and integrated service capabilities.
