US-based Timex Group acquires Daniel Wellington
The Timex Group, a US-based watch manufacturer, has acquired a majority stake in Daniel Wellington. The Swedish watch brand was founded in 2011 by Filip Tysander.
“We are pleased to announce that Timex Group, one of the world’s most established watch manufacturers, has acquired a 51 percent stake in Daniel Wellington, thus opening a new chapter in our journey,” Daniel Wellington announced on LinkedIn.
The company, which manufactures its watches in Asia, had suffered heavy losses in recent years. In 2016, Daniel Wellington generated a profit of around €90 million, but since then the brand, wholly owned by Filip Tysander, had steadily declined in popularity. The Swedish magazine breakit.se reports that Daniel Wellington closed 2022 with a loss of approximately €43 million.
With this acquisition, the Timex Group significantly expands its portfolio in the affordable fashion watch segment and anticipates gaining access to a younger target group in the European market, particularly through Daniel Wellington's still extensive dealer network. The Timex Group already maintains an office in the Netherlands and, through Daniel Wellington, now also has a presence in Scandinavia.
According to the agreement, Daniel Wellington intends to continue as an independent company based in Stockholm, but Timex will have influence over design, marketing, pricing, and so on.
“What Filip Tysander has created with Daniel Wellington is remarkable and compelling. It is a brand that has grown out of the founder’s vision, hard work, and strong design DNA. We can support the company’s growth while preserving the spirit that makes it authentic,” Tobias Reiss-Schmidt, CEO of the Timex Group, is quoted as saying by the Danish magazine Time & Crown.
“Our experience shows that great things happen when a design-oriented brand meets the scale and power of our global platform. We look forward to achieving something together,” the CEO continued.
Daniel Wellington founder Filip Tysander is quoted by Time & Crown as follows:
“When I founded Daniel Wellington, my goal was to create something timeless and affordable; a watch that feels personal, stylish, and uncomplicated. It’s amazing to see how far we’ve come. Partnering with the Timex Group, a company that has stood for craftsmanship, quality, and innovation for over 100 years, is the right step to unlock the brand’s full potential.”
The purchase price for the 51 percent stake in Daniel Wellington was not disclosed.
The Timex Group is a privately held US company headquartered in Middlebury, Connecticut, with multiple operating units and over 5,000 employees worldwide. As one of the world's largest watch manufacturers, the Timex Group companies produce watches under a number of well-known brands, including Timex, Nautica, Guess, GC, Ted Baker, Salvatore Ferragamo, Versace, Versus, Missoni, Furla, and adidas. Annual revenue is between €500 and €900 million.
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