Swatch Group acquires strategic stake in UAE-based Rivoli Group
The Swatch Group, a global watch manufacturer, has today announced the acquisition of an important stake in the Rivoli Group (Rivoli), one of the leading lifestyle luxury goods retailers in the GCC (Gulf Cooperation Council) region which operates over 245 retail outlets.
- United Arab Emirates: Wednesday, July 23 - 2008 at 12:29
- PRESS RELEASE
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The strong partnership will support Rivoli's regional expansion strategy including its entry into the Kingdom of Saudi Arabia and India.
Headquartered in Dubai, Rivoli is a private retail company with a diverse portfolio of international luxury brands and an extensive retail network in the UAE, Bahrain, Oman and Qatar. The Rivoli Group has built a strong reputation as a leading luxury retailer and now operates over 245 retail outlets. Rivoli is a portfolio company of Dubai International Capital.
The Swatch Group is one of the world's largest watch manufacturer with over 19 brands, going from the luxury and prestige segment with Breguet to the basic range with Swatch with over 161 factories in Switzerland (23000 people worldwide) and delivering movements apart from the own brands to the whole Swiss watch industry. Last year, the turnover of the Swatch Group was a record 6 billion Swiss Francs.
Nayla Hayek, Member Board of Directors of the Swatch Group said:
'Our investment in Rivoli cements the long-term partnership we have shared for over two decades and will be not only beneficial to both parties but also to the consumer in the region. Our association with Rivoli Group has broadened strongly throughout this period to include the representation and retail of the spectrum of our watch brands in the UAE. The GCC region is one which possesses high growth potential and with this partnership we plan not only to tap into the opportunities that the region offers but also to increase the service to the consumer.'
Commenting on the new partnership, Rivoli Group's Managing Partner, Ramesh Prabhakar said, 'This investment serves to further strengthen our ties with Swatch Group whom we have worked alongside over the years. We are delighted that the Swatch Group has chosen to be a part of Rivoli's success story and this partnership will enable us to expand our retail network and enter new and important markets where the demand for luxury watches remains high. Swatch Group will assist us in achieving even greater success and we look forward to a fruitful and long-term relationship.'
Dubai International Capital, the international investment arm of Dubai Holding, acquired a significant stake in Rivoli Group in September 2007 and remains a committed long-term shareholder in the Group.
Sameer Al Ansari, Executive Chairman and Chief Executive Officer of DIC said, 'It is with great enthusiasm that we welcome the Swatch Group as shareholder and strategic partner in Rivoli and believe they will join us in providing the right backing for Rivoli's exciting growth plans. Swatch Group's investment confirms our long-held confidence in Rivoli's experienced management team and successful business model, both of which have been instrumental in the group's impressive track record of growth.'
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About Swatch Group:
The Swatch Group Ltd is the largest manufacturer and distributor of watches and jewellery in the world with over 157 factories in Switzerland and delivering movements apart from the own brands to the whole Swiss watch industry. Last year, the turnover of the Swatch Group was 6 billion Swiss Francs. It is a synonym for emotional and luxury products of high quality and has its own strong worldwide network of distribution organisations. The Group is an expert in the manufacture of finished watches, movements and components. Its watch brands are Breguet, Blancpain, Glashütte Original, Jaquet-Droz, Léon Hatot, Omega and Tiffany & Co. in the luxury and prestige segment; Rado, Longines, Union Glashütte in the high end range; Tissot, Calvin Klein, Certina, Mido, Hamilton, Pierre Balmain in the middle range; Swatch, Flik Flak in the basic segment, and Endura.
About Rivoli Group:
Since 1988, The Rivoli Group has been building its strong position in the fast growing retail environment in the UAE and the lower Gulf States. The Group has become one of the largest importers, distributors and retailers of luxury brands in the Middle East and offers a wide range of product categories from watches and writing instruments to menswear, accessories, gift items, eyewear and more. The Rivoli Group represents brands such as Blancpain, Omega, Glashutte Original, Longines, Montblanc, Dunhill, Vertu, JM Weston, Kenzo and more. The Rivoli Group currently owns and operates over 245 stores throughout the GCC.
About Dubai International Capital LLC:
Established in 2004, DIC is an international investment company with offices in Dubai and London focused on both private equity and public equity. A wholly-owned subsidiary of Dubai Holding, DIC manages an international portfolio of diverse assets that provide its stakeholders with value growth, diversification, and strategic investments. Assets under management total over $13bn. DIC focuses on three asset classes:
1. DIC Private Equity: invests mainly in secondary buyouts in developed markets where it backs strong existing management teams over a medium to long time horizon. DIC PE has acquired businesses in a range of sectors in Europe and North America including:
- UK leisure company Tussauds Group for £800m (later merged with Merlin Entertainment Group to create the world's second largest visitor attractions; DIC retains a 20% stake)
- UK engineering company Doncasters for £700m
- US engineering company FastenTech for $492m (later merged Doncasters with Fastentech creating world leader in turbine manufacture)
- UK hotel chain Travelodge for £675m,
- German industrial packaging manufacturer Mauser for €850m
- UK healthcare company Alliance Medical for £600m
- German producer of specialty alumina Almatis for $1.2bn
2. DIC Global Equities: makes structured investments in large-cap, Fortune 500 global equities, that are forecast to deliver above average returns over the long term, either directly or via DIC's $2bn Global Strategic Equities Fund (GSEF). The GSEF has acquired substantial stakes in HSBC, EADS, and Sony Corporation. DIC has also directly invested in the Indian financial services firm ICICI Bank (2.96%) and Och-Ziff (9.9%) an alternative asset management firm based in New York.
3. DIC Emerging Markets: invests in a range of asset classes in emerging markets.
- Equity investments: include significant stakes in the UAE-based luxury retailer Rivoli Group and Singapore-based True Group, a leading provider of wellness services in South East Asia, in addition to a US$200 million investment in Oger Telecom, a leading regional telecom conglomerate.
- Sector / country-specific investment funds: DIC has established several such as Ishraq, a $150m investment company bringing the Holiday Inn Express brand to the Middle East; the $500m MENA Infrastructure Fund, which invests in infrastructure projects in the Middle East and North Africa, and Jordan Dubai Capital, a $300m investment company that targets private equity opportunities in Jordan and most recently China Dubai Capital, a $1bn fund that will target opportunities in China's growing economy.
DIC was named MENA Private Equity Firm of the Year in the 6th annual Awards for Excellence in Private Equity Europe 2008, organised by Dow Jones Private Equity News.
For further information please contact:
Mellerie Abating
Secretary
BRUNSWICK GULF LTD
Gate Village Building 1
PO Box 506691
Dubai International Financial Centre
Dubai, UAE
Direct: +971 4 365 8260
Fax: +971 4 425 5792
Mobile: +971 50 7381324
Posted by Siba Sami AmmariWednesday, July 23 - 2008 at 12:29 UAE local time (GMT+4)
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