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Harry Winston Diamond Corporation to Sell its Luxury Brand Segment to Swatch Group for $750M

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UPDATE: BMO Capital Markets Downgrades Harry Winston Diamond to Market Perform on Share Price Outperformance
Benzinga's Top Downgrades

Harry Winston Diamond Corporation
(NYSE: HWD) (the "Company") announces today that it has entered
into an agreement to sell its luxury brand diamond jewelry and
timepiece division, Harry Winston Inc., to The Swatch Group Ltd. (OTC: SWGAY) for
US$750 million plus their assumption of up to US$250 million of pro
forma net debt.

Chairman and Chief Executive Officer, Robert Gannicott said, "At the time that we purchased the Harry Winston brand, resource
investment opportunities for diamonds were rare and expensive following
the euphoria of the Canadian diamond discoveries, and the involvement
of the large international mining companies. The Harry Winston brand
was competitively priced compared with its peers and we could bring
diamond expertise and strategic connections to enhance value. Today
there is a range of diamond resource opportunities while the value of
heritage luxury brands has increased dramatically. This transaction
represents a sound return on our original investment. It will leave us
well equipped to realize upstream opportunities in an environment where
cash has become a strategic resource while preserving and expanding our
relationship with the downstream diamond business."

The Swatch Group, with its unparalleled combination of expertise in both
engineering and brand management, is the perfect

See full press release

Posted-In: News Guidance Management Global

 

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