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Watches of Switzerland Acquires 4 New Showrooms
Wednesday 11 December 2019

11 December 2019 - UK-based watch retailer Watches of Switzerland Group plc (LSE: WOSG) has entered into an agreement with Fraser Hart Ltd. to purchase four luxury watch and jewellery showrooms trading under the brand name Fraser Hart, the company said.
 
The showrooms in Stratford, Brent Cross, Kingston and York will expand the Group's UK store portfolio in strategic locations that align with the Group's brand offerings.
 
These showrooms will be rebranded as Watches of Switzerland (Stratford and Brent Cross) and Mappin and Webb (Kingston and York) on completion.

The group will invest in the stores to create a highly luxurious and contemportary experience for consumers, that reflects the Group's wider store network.
 
The four showrooms had a combined annual revenue of GBP 25.7m and 4-Wall EBITDA of GBP 5m for the financial year ended 24 June 2019.

Gross tangible assets subject to the transaction are expected to be in the region of GBP 5.5m.
 
The transaction is expected to complete in January 2020 for a total purchase price of GBP 31.7m (USD 41.21m), subject to working capital adjustments on completion and represents a valuation of 6.3x EBITDA.

The acquisition will be paid in cash from existing borrowing facilities. The transaction is expected to contribute revenue of cGBP 6m and EBITDA of cGBP 1m in FY20 and will be immediately earnings accretive.
 
The Watches of Switzerland Group is a luxury watch specialist, operating in both the UK and US, with a complementary luxury jewellery offer.
Details
Date Published: 11/12/2019
Target: Four luxury watch and jewellery showrooms trading under the brand name Fraser Hart
Country: UK
Deal Size: 41.21m (USD)
Sector: Wholesale/Retail
Type: LBO
Financing: Cash
Status: Agreed
Vendor: Fraser Hart Ltd
Buyer: Watches of Switzerland Group
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