The Hour Glass acquired Watches of Switzerland, a watch retail chain wholly owned by the Jay Gee Melwani group, yesterday. In a filing with Singapore Exchange Limited (SGX), The Hour Glass revealed that it now wholly owns Watches of Switzerland, in a deal worth around S$13.3 million. The net asset value of Watches of Switzerland as at 30 September was around S$8.8 million. The filing also disclosed that the acquisition was made entirely in cash from The Hour Glass’s internal resources, and that it is not expected to have a tangible impact on either the group’s net tangible assets, or its earnings per share, for this financial year ending on 31 March 2015.

In its press release announcing the acquisition, The Hour Glass described the buyout as “friendly”, and “conducted on a willing buyer willing seller basis”. It cited the opportunity for the group to tap into Singapore’s suburban retail landscape, and to extend its reach in the luxury watch segment, as reasons for the takeover. Watches of Switzerland currently operates five retail outlets, one each in The Paragon, Centrepoint, VivoCity, Tampines Mall, and City Square Mall, which The Hour Glass will continue to maintain and operate. In contrast, The Hour Glass’s 17 boutiques in Singapore before the acquisition are all located in prime retail locations downtown. Following this acquisition, The Hour Glass’s network of boutiques numbers 37, spread across nine cities in the Asia-Pacific region.

Before the acquisition, Watches of Switzerland retailed some brands that The Hour Glass did not, including Ball, Bell & Ross, Franck Muller, Rado, and Tissot. A representative of The Hour Glass revealed that the final list of brands that its new subsidiary will carry may be subjected to change following this takeover.