Chanel buys 25% stake in niche Swiss watchmaker MB&F by Reuters

ZURICH (Reuters) – Chanel has bought a 25 percent stake in high-end Swiss watchmaker MB&F, known for its quirky watch designs, the French luxury house said on Thursday, adding that it was part of its strategy to grow its presence in hours.

MB&F has built a reputation as a manufacturer of small series of watches inspired by retro futuristic and science fiction themes, as well as animals such as jellyfish and frogs.

Terms of the deal were not disclosed.

The Geneva-based company, which was founded in 2005, had annual sales of 45.4 million Swiss francs in 2023 when it produced 419 watches and 3,500 watches of its cheaper MAD Editions brand, which sell for approx. 3,000 Swiss francs ($3,500).

Its more exclusive watches sell for between 60,000 and 200,000 Swiss francs and often have waiting lists of up to two years.

Chanel makes watches in addition to its fragrance and fashion lines, and has previously taken stakes in other Swiss watchmakers, including Romain Gauthier and FP Journe.

“We are delighted to sign a strategic partnership with MB&F, who share the same values ​​of independence, creativity and excellence,” said President of Chanel Watches & Fine Jewellery, Frederic Grangie.

Following the transaction, MB&F founder Maximilan Buesser will own 60% of the company and his business partner Serge Kriknoff, who is the company’s head of research and development and production, will own 15%.

Buesser said the deal will secure the long-term future of the company, which has 59 employees. Chanel does not have the option to take a majority stake in MB&F.

“In addition to allowing us to pursue our independent path without any pressure to grow, Chanel’s investment will strengthen our operations by providing access when needed to their broader ecosystem and network of specialist suppliers,” said Buesser.

($1 = 0.8526 Swiss francs)