German addition expands overseas markets
EganaGoldpfeil (Holdings), a manufacturer and distributor of branded watches and Goldpfeil leather goods, has acquired German timepiece maker Junghans as part of plans to enhance its presence in the international market.
Director David Wong Wai-kwong said the HK$304 million transaction would enable EganaGoldpfeil to strengthen its distribution network in Europe.
'We have about 9,000 distributing outlets in Europe, while Junghans has 6,000,' Mr Wong said.
'We are optimistic that these 6,000 outlets will eventually carry other brands distributed by EganaGoldpfeil.'
Mr Wong expected group turnover to increase by at least 22 per cent as a result of the acquisition.
In the year to December 31, Junghans had a turnover of HK$552.3 million, and attributable profit of HK$243.6 million.
The company, a member of military-products manufacturer Diehl before the acquisition, had the largest share in the German timepiece market last year in terms of turnover.
Only 10 per cent of the company's turnover came from the Asian market.
Mr Wong hoped the acquisition would enable Junghans to bring that figure up to 25 per cent within the next 18 months.
EganaGoldpfeil's turnover in the year to December 31 was HK$2.54 billion - 45 per cent of the turnover was generated by timepieces and 27 per cent came from jewellery.
