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Breaking News: Breitling Acquires Universal Genève
Breitling has just announced the acquisition of Universal Genève, a once-storied brand famous for its Polerouter and Compax chronographs but that was dormant for years. Breitling will pay CHF60 million for the brand, but in tranches with CHF20 million upfront and the balance over the next five years. The acquisition marks the first step in chief executive Georges Kern’s ambitions of building a watchmaking group, which will presumably go public. According to Mr Kern, Universal will be revived by a new team and run independently of Breitling, though it is almost a certainty Breitling will bestow upon its sister company some of its in-house movement know-how. A sleeping beauty Since 1989, Universal Genève has been owned Stelux, a Hong Kong watchmaking group focused on the affordable end of the market. The company’s primary business is the lucrative distribution of Seiko in Hong Kong and Southeast Asia, while its City Chain stores specialised in low-priced watches. Stelux owns a handful of other Swiss brands, including Solvil et Titus and Catena, none of which are premium brands as Universal might possibly be. Although Universal attempted several halfhearted comebacks, particularly in the 1990s, the brand has gone nowhere for some time, making it a relatively easy turnaround given the starting point. Commenting in the takeover announcement, Breitling chief executive Georges Kern says, “Rebuilding a brand with such a rich narrative is not a quick endeavor-it is a meti...