LONDON – Watches of Switzerland Group has acquired Deutsch & Deutsch, the Texas-based, family-owned luxury watch and jewelry retailer that’s been in business since the ’20s.
WoS said it bought of 88 percent of Deutsch & Deutsch, with an option to buy the remaining share capital. The purchase price was not disclosed.
The business, which has four Texas showrooms in El Paso, Laredo, McAllen and Victoria, is an authorized distributor of Rolex, Roberto Coin, Cartier, Omega, Tudor, Tag Heuer, Breitling and IWC Schaffhausen.
WoS, which is based in London, said the showrooms are “highly complementary” to its own presence in Texas. They will continue to trade under the Deutsch & Deutsch name, “reflecting the local strength of the brand as it approaches its centenary.”
Tad and Aladar Deutsch will remain with the business and continue to play a key role in leading these showrooms post-acquisition, according to WoS.
For the financial year ended Dec. 31, the four showrooms generated a combined annual revenue of $67 million with profitability “in line” with the existing WoS U.S. retail business.
“We see opportunity to enhance the product lineup by introducing further access to the wide range of luxury watch and jewelry brands sold by the Watches of Switzerland Group,” WoS said Friday. It added that, following the acquisition, it now operates 25 Rolex-anchored showrooms in the U.S.
WoS said it expects the transaction to deliver “attractive” financial returns, in line with its track record of previous showroom acquisitions. The company added that strategic acquisitions are a key pillar of its growth strategy and capital allocation framework.
Brian Duffy, Wos group CEO, said, “We have admired Deutsch & Deutsch for many years and see this value-accretive acquisition as an excellent complement to our existing U.S. showroom network, strengthening our leading position in the luxury watch and jewelry market in the U.S.”
He added: “We look forward to combining Deutsch & Deutsch’s local expertise with the strengths of the Watches of Switzerland group as we continue to grow our presence in this key market.”
WoS group is the U.K.’s largest luxury watch retailer, and the largest retailer for brands including Rolex. It operates in the U.K. and U.S. Its other holdings include Mappin & Webb, Goldsmiths, Mayors, Betteridge, Analog:Shift and Hodinkee.
The group also has the exclusive distribution rights for Roberto Coin in the U.S., Canada, Central America and the Caribbean. WoS group has 200 showrooms across the U.K. and the U.S., including 83 dedicated monobrand boutiques in partnership with brands including Rolex, Roberto Coin, and Bulgari.
