Patek Philippe has been owned by the Stern family for almost a century, with Thierry Stern (pictured) becoming chairman of the company in 2009. Photo: Bloomberg
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https://scmp.com/magazines/style/watches-jewellery/article/2183178/swiss-watchmaker-patek-philippe-really-sale Luxury
Is Swiss watchmaker Patek Philippe really up for sale?
Analysts speculate that the 180-year-old luxury Swiss watch manufacturer, which has sales of US$1.5 billion, could cost as much as US$10 billion if sold
If rumours are true that Patek Philippe is to be sold, a potential sale of the high-end watch brand could be approaching soon. Photo: Reuters
Patek Philippe, the closely held maker of US$10,000-plus Calatrava watches, may be coming up for sale, according to analysts at Berenberg who cited industry talk.
The 180-year-old Swiss watchmaker could fetch €7 billion to €9 billion (US$8 billion to US$10 billion), analysts led by Zuzanna Pusz wrote in a note.
Patek Philippe has been owned by the Stern family for almost a century, and Thierry Stern became the company’s chairman in 2009.
“It was interesting to hear in the corridors of the Geneva watch salon that a potential sale of the high-end watch brand Patek Philippe could be approaching soon,” the analysts wrote, noting that it could be just a rumour.
A Patek spokeswoman declined to comment except to say deal speculation tends to occur during the annual watch fairs in Switzerland, including last week’s Geneva show.
A sale of Patek Philippe would upend the watch industry and could lead to a bidding war, as it’s one of the last prize assets that has not fallen into the hands of a luxury conglomerate. Swatch Group, which has bought brands including Omega and Richemont, which owns Cartier, make more than half of all Swiss watches.
Patek Philippe has sales of 1.5 billion Swiss francs (US$1.5 billion), according to Berenberg estimates. On its website, the company says its “intention is to independently pursue the path that led to its success”.
It was interesting to hear in the corridors of the Geneva watch salon that a potential sale of the high-end watch brand Patek Philippe could be approaching soon
“We understand that one of the largest conglomerates in the sector would likely be interested in the asset given its currently relatively low exposure to the watch category,” the analysts wrote. Pusz wasn’t immediately available to comment further.
Two years ago, family-owned Breitling was sold to private-equity owners CVC Capital Partners for more than €800 million.
In 2014, Stern told Swiss newspaper Le Temps that the company may eventually need to leave Geneva or put itself up for sale if its tax burden wasn’t reduced. Months later, the company announced a 450 million Swiss franc investment plan in the canton.
Stern’s wife, Sandrine, works in design at Patek Philippe. Their children are in their teens, and Patek’s chairman has said he wouldn’t push them into the business if they didn’t want to join.