F.P. Journe and Chanel Acquire 95% of EBEL from Movado Group

In a recent announcement by the Movado Group, Ebel is set to be acquired by a strategic buyer group led by Montres Journe SA, with the participation of Chanel (partial owner of F.P. Journe) and industry veteran and ex-CEO of De Bethune, Pierre Jacques. The latter will serve as Chief Executive Officer of Ebel. The Group of investors have entered into an agreement with the American Movado Group. The transaction is subject to customary adjustments, and a 95% interest in Ebel will be acquired for USD 66.5 million – the Movado Group will retain a 5% stake in the brand.

An important name in Swiss watchmaking, Ebel was founded in 1911 in La Chaux-de-Fonds – the company was named after the initials of the founder and his wife, Eugene Blum Et Alice Levy. The brand was remarkably successful in the 1970s and 1980s, in particular under the management of the charismatic Pierre Alain Blum. With its chic quartz watches, the company was still thriving while the quartz crisis hit the industry. Ebel was also manufacturing Cartier watches under licence since the 1970s. But because of unfortunate investments in other industries, Pierre-Alain Blum was forced to sell Ebel to Investcorp in 1994, which in turn sold it to LVMH in 1999. In 2003, the Movado group bought Ebel from the French luxury powerhouse. Two decades later, the brand changes hands again. The news represents an opportunity for the American Movado Group to divest from a brand whose activity appears relatively disconnected from its core activities, the American group being mostly active in an entry-level field, which next to Movado, produces watches under license for multiple fashion brands (Hugo Boss, Calvin Klein, Tommy Hilfiger…)

The group of investors led by François-Paul Journe hopes to restore this important Swiss name to its former prominence. A strategic shift can therefore be expected, particularly given the different cultural backgrounds and expertise of the parties involved: F.P. Journe and Pierre Jacques bring a strong heritage in high-end, independent watchmaking, while the Movado Group has traditionally focused on accessibility.

The transaction includes trademarks, other intellectual property, inventory and certain other assets primarily dedicated to the Ebel business, including the Villa Turque, a superb modernist house built by famed architect Le Corbusier in La Chaux-de-Fonds. If the share of the different investors is not disclosed, for Chanel, it is also a way to expand its watchmaking investment portfolio already comprising ownership or a stake in companies such as G&F Chatelain (watch production), Bell & Ross, Romain Gauthier, F.P. Journe, Kenissi, MB&F or Kross Manufacture.

For more details, the press release from the Movado Group can be consulted here.