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For more than a century, three generations of Bucherer built one of the world’s most exclusive watch and jewelry retailers, selling expensive timepieces and sparkling gemstones to the rich and famous around the world.
Now the secretive 87-year-old Swiss billionaire behind the eponymous luxury boutiques, Chairman Jörg G. Bucherer, has agreed to sell Bucherer AG to Rolex in a move that has stunned the world of high-end watch retail.
The companies did not disclose the terms of their deal and coming up with an estimate is not easy as none of the Swiss-based companies publish their financial results.
Jean-Philippe Bertschy, an analyst at Vontobel Holding AG, estimated annual sales at Bucherer’s more than 100 stores at around 2 billion Swiss francs ($2.3 billion), giving the company an enterprise value of up to 4 billion. million Swiss francs. He estimated that Bucherer accounts for about 5% of Rolex sales.
The 80-year-old Bucherer’s decision to divest the family business took the industry by surprise, in part due to the intense secrecy surrounding him and the two watchmakers, whose histories have been closely intertwined for decades. In a statement about the deal, Rolex said the choice for him was made “in the absence of direct descendants.”
With the purchase of Bucherer, Rolex gives itself a significant presence in consumer sales for the first time, a strategic shift away from reliance on outside distributors. The only store in the world that is currently owned and operated by Rolex is located in its hometown of Geneva.
Read more: Rolex revolutionizes luxury watch retail with the purchase of Bucherer
The deal, which still requires approval from authorities, comes amid what UBS Group AG has called the biggest wealth transfer in history in the next two decades as company founders and investors age. However, it is unclear where Bucherer plans to direct the proceeds from the sale. A spokesman for the firm declined to provide details beyond Rolex’s statement, adding that Bucherer “has always been a very discreet company.”
What is clear is that the move will end dynastic control over the purveyor of expensive jewelry and watch brands, including Rolex, its own Carl F. Bucherer, Chopard and Blancpain. The origins of the business date back to 1888, when businessman Carl-Friedrich Bucherer and his wife Luise opened a store in Lucerne, according to the company’s website.
His sons Ernst and Carl Eduard joined the business in the early 1920s, and Ernst struck a deal with Rolex founder Hans Wilsdorf in 1924 to add the brand to his product line. Third generation Jörg took over management in 1977, expanding to Austria in the 1980s and then Germany a decade later. Bucherer opened a flagship store in Paris in 2013 and has also moved to London, Copenhagen and the United States.
Jörg Bucherer has never given an interview to the media and is only briefly mentioned on the company’s website. A French corporate document lists him as a Swiss citizen.
Wilsdorf, the German-born founder of Rolex, created a Geneva-based foundation in his name in 1945 that took ownership of the company, according to the company’s website. He died in 1960 and also had no direct descendants.
“Jörg Bucherer is the last active person to have met and worked with Hans Wilsdorf,” Rolex said Thursday in its statement announcing the deal, adding that Bucherer will remain the retailer’s honorary chairman.
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