Swatch to Buy Land for New Tiffany Venture
January 29, 08
The Swatch Group has signed a declaration of intent with the City of Biel, Switzerland to acquire a lot for the new Tiffany & Co. watch joint venture announced last December. The sale price of the land and building at Seevorstadt 75, covering a total of 3400 sq m, is CHF 2.7 million ($2.48 million). A small initial work force of some 25 people is expected to operate at the location. Nayla Hayek, daughter of the Swatch Group’s founder Nicolas G. Hayek, will head the new company. The Biel City Council will have to approve the sale to Swatch. The Swatch-Tiffany strategic alliance to develop, produce and distribute worldwide Tiffany & Co. brand watches was reached after a year of discussions. As part of the agreement, Swatch is to form a wholly-owned company licensed to use Tiffany’s trademarks and operate under the Tiffany name. Tiffany will earn from the company’s pre-tax profits. The Tiffany & Co watches will be distributed through the Swatch distribution network – including affiliates, Swatch retail facilities and third party distributors, and through Tiffany stores.