ZURICH (Reuters) - Chanel has bought a 25% stake in high-end Swiss watchmaker MB&F, known for its quirky watch designs, the French luxury house said on Thursday, adding it was part of strategy to increase its presence in watch-making.
MB&F has built a reputation as a maker of small series of watches inspired by retro futuristic and science fiction themes, and as well as animals such as jelly fish and frogs.
The terms of the deal were not disclosed.
The Geneva company, which was set up in 2005, had full year sales of 45.4 million Swiss francs in 2023, when it made 419 timepieces and 3,500 watches of its cheaper MAD Editions brand, which sell for around 3,000 Swiss francs ($3,500).
Its more exclusive timepieces 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 perfume and fashion lines, and has previously taken stakes in other Swiss watch-makers 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," President of Chanel Watches & Fine Jewellery Frederic Grangie said.
Following the deal, MB&F founder Maximilan Buesser will own 60% of the company and his business partner Serge Kriknoff, who is the company's head of R&D and production, will own 15%.
Buesser said the deal would ensure the long-term future of the company, which employs 59 people. Chanel has no option to take a majority stake in MB&F.
"In addition to allowing us to pursue our independent path, free of any pressure on growth, the investment by Chanel will strengthen our operations by providing access when needed to their wider ecosystem and network of specialised suppliers," Buesser said.
($1 = 0.8526 Swiss francs)