Citizen To Acquire Frederique Constant In a Swiss-Japanese Partnership

Frederique Constant Geneva headquarters

Citizen Watch Co., Ltd., has entered into an agreement to acquire the Geneva-based Frederique Constant Holding, the parent company of the Frederique Constant, Alpina and DeMonaco watch brands. 

The two companies in a joint statement Friday said the acquisition is part of the Japanese watch company’s “Citizen Global Plan 2018” business plan—a multi-brand strategy where Citizen seeks to complete its brand portfolio by acquiring Swiss brands. 

The acquisition will enable Citizen Watch to strengthen its brand portfolio, offering Swiss timepieces in three categories: traditional Swiss watches (Frederique Constant), sport watches (Alpina) and haute horlogerie (DeMonaco).

There was no mention whether MMT (Manufacture Modules Technologies Sàrl.) is part of the deal. MMT was founded a year ago as a joint venture between Frederique Constant Holding and Silicon Valley to bring an horological smartwatch open platform to the Swiss watch industry. 

Citizen said the present management personnel and staff will continue to hold the same positions after this acquisition.

“We have a great opportunity to expand the sales of Frederique Constant through our current distribution channels of Citizen branded watches, particularly in Japan and the U.S.” said Toshio Tokura, Citizen Watch CEO. “With the acquisition of Frederique Constant, the Citizen Watch Group will be able to augment its portfolio of brands and occupy the space in the markets where some of our competitors operate and further expand the presence of the Citizen brand in the market.” 

He added “Citizen will be able to achieve great synergy for sharing technologies and infrastructures in the future.”

Aletta and Peter Stas, who founded Frederique Constant Holding SA in 2008 to develop tradition high-quality Swiss timepieces at affordable prices, were always staunchly independent. They said they were approached by two companies a year ago and entered into discussions with them only when it became apparent their children were not interested in taking over the business.

“After a year of deep discussions, we felt best with one group in terms of expectations and strategy. This group required, specifically, to keep both of us and the current management team in place for at least five years,” the husband and wife owners said in their own statement. 

In the statement with Citizen, they said: “As we feel a tremendous commitment to the Frederique Constant Group and its people, we started to explore a potential collaboration to secure the company beyond ourselves. We have become increasingly impressed by the innovative technologies of the Citizen Group. We see the opportunity of Swiss-Japanese partnership to develop and market Accessible Luxury watches for the 21st century and beyond.” 

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Baselworld 2012 is a Smorgasbord of Horological Delights

Seiko’s Astron GPS Solar watch

A fractured arm kept me from attending Baselworld this year. Fortunately, I know some of the best writers and experts in the jewelry and watch industry. One of those folks is William George Shuster who has kindly agreed to take time from his busy schedule to write a few stories from the tradeshow. Below is his second report.

By William George Shuster
Special Correspondent

BASEL, Switzerland — Baselworld, the world’s largest watch and jewelry trade fair is like an annual smorgasbord for watch enthusiasts, offering up everything from popularly-priced mass market watches to exquisite haute horlogerie timepieces and the 40th annual edition of this ever-expanding trade event (which runs until March 15), is no exception.

Travelers’ tool. A number of new models cater impressively to world and business travelers.

One standout is Seiko’s new Astron GPS Solar watch (top picture), presented with great flourish at the fair by Japan-based Seiko Watch Co., one of the world’s largest watchmakers. The impressive timepiece, powered by solar cells in the dial eliminating the need for batteries, can adjust itself to the time and location of the world’s 39 time zones at the gentle push of a button, thanks to signals from at least four GPS satellites, which the watch is always in contact. It is the first timepiece able to adapt immediately to all of the world’s time zones, wherever the wearer travels. That’s why Seiko calls it “the first global watch.”

Another notable timepiece in this category is Rolex’s new Oyster Perpetual Sky Dweller chronometer. The timepiece has a dual-time zone and an off-center innovative 24-hour display operated and adjusted by the watch’s bezel. It also has an annual calendar (the first Rolex watch to have one), uses a new movement and is the start of a new Rolex family.

Exquisite masterpiece. Meanwhile, German luxury watchmaker Glashütte Original, known for mechanical masterpieces, unveiled an exquisite masterpiece. Its limited edition Grande Cosmopolite Tourbillon is a world-first for world travelers, claims the company, and the “most unusual and sophisticated masterpiece in [our] history.” The complicated marvel lets a global traveler track the time of day or night simultaneously at home and while on the road in any two of the 37 world time zones. It accounts correctly for Daylight Saving Time or Standard Time, and can travel forward ‘time wise’ (Eastward) or backward (Westward). All time and date changes made by the wearer are displayed by a perpetual calendar geared to do so.

Completing this unique combination of horological complications—a world-first for mechanical watches, says the company—is a flying minute tourbillion (developed in 1920 in Glashütte). One interesting side effect: Its dial design looks like a “winking” happy face due to the placement of its day, month and day/night sundials.

If you want it, however, act quickly: The 43mm platinum timepiece is limited to 25 pieces worldwide and costs 325,000 Euros ($426,500).

Hublot $5 million watch

Of course, that’s chicken feed compared to the world’s most-expensive watch unveiled at Basel: The “Hublot $5 Million,” created by the innovative Swiss luxury watch brand. Also a world first, the 44mm mechanical timepiece is covered with 1,282 diamonds, weighing more than 100 carats, including six square stones, each more than three carats. It took one year to select the stones, and another 14 months to create the watch. Why did Hublot make it? Because it can.

Innovation & fun. The focus isn’t all on travelers watches, quartz-based technology or example of craftsmen’s art. Many of the watch business’s technological innovations in recent years have involved watches with mechanical movements (both hand-wound and self-winding). One notable at BaselWorld is Swiss watchmaker Ellicott’s tribute to John Ellicott, a 17th century English watchmaker. The watch is the world’s thinnest minute repeater with perpetual calendar, with a hand-wind mechanical movement measuring in at just a wispy 5.1mm.

Ritmo Mundo’s Reflex

And watches can be just plain fun, too. Ritmo Mundo’s Reflex ($150) is inspired by the “slap bracelet” from childhood. Gently tap the futuristic tongue-shaped timepiece against a wrist and the snap curl design, in brightly-colored smooth silicone immediately wraps around it, whatever the size. Its parallel-line LED digital linear display shows time and date, with numbered dots that immediately light up.

Star gazing. If BaselWorld is like a horological smorgasbord, it is also—pardon the abrupt shift in metaphor—a stage for many of the world’s celebrities,

BaselWorld isn’t only the center of the globe’s watch and jewelry business for a week. It is also a magnetic for celebrities. Among those seen during the show’s first days were international movie star, former U.S. governor and avid watch collector Arnold Schwarzenegger (stopping by to say hello to his friend Ali Soltani, owner of Ritmo Mundo watches); tennis champion Roger Federer (a Basel native) for luxury watch brand Rolex; and movie actress Cameron Diaz, brand ambassador for TAG Heuer Swiss luxury sport watches.

Also smiling prettily for their fans were Melinda Bam, Miss South Africa (brand ambassador for Jet Set watches); Alina Buchschacher Miss Switzerland (brand ambassador for Balman watches); and Justine De Jonckheere, Miss Belgium 2011, visited the show’s gemstone halls.

William George Shuster is a multi-award winning writer—including three Jesse H. Neal Award, business journalism's highest honor. He has 40 years experience as a journalist, author and editor. He is considered one of the world’s top watch industry journalists, covering the world of timepieces for the past 30 years.