Watches of Switzerland Acquires Hodinkee, Shares Rise

Watches of Switzerland Group (LON: WOSG) shares rose by 2% in early Friday trading, following a recent four-day decline. The acquisition of Hodinkee, the digital editorial content provider for luxury watch enthusiasts, has boosted investor sentiment.

The acquisition aligns with Watches of Switzerland's strategy to enhance its online presence, particularly in the fast-growing US market.

Hodinkee, founded in 2008, offers digital content, limited edition watch collaborations, and insurance services, attracting a large and engaged audience of 22.2 million annual unique visitors, according to WOSG.

WOSG said in its press release that it plans to integrate Hodinkee's commercial activities, including its exclusive watch collaborations, with its US e-commerce site.

This will provide access to a captive audience and enhance its online presence. Additionally, the company will integrate Hodinkee's insurance agency business, which partners with Chubb, offering protection for luxury watches and jewelry.

Ben Clymer, Hodinkee's founder, will return to lead the operations of Hodinkee, with WOSG stating the company will have editorial independence.

The acquisition, funded through existing financing facilities, is expected to have a minimal impact on WOSG's leverage position.

With the addition of Hodinkee, Watches of Switzerland Group now comprises several brands, including Watches of Switzerland, Mappin & Webb, Goldsmiths, Mayors, Betteridge, Hodinkee, and Analog:Shift.

Brian Duffy, CEO of Watches of Switzerland Group, stated: “With the support of the wider Group, we will enable Ben and his best-in-class editorial team to keep doing what Hodinkee does best: further expanding its passionate and loyal community by being the most authentic and authoritative voice on the industry.”