Editor’s Note
This strategic acquisition of a minority stake in a key Swiss movement manufacturer underscores LVMH’s commitment to securing and vertically integrating its supply chain for high-end watchmaking. The move is poised to bolster the technical foundations of its major watch brands.
LVMH’s Watches & Jewelry division has acquired a minority stake in Swiss movement manufacturer La Joux-Perret from Japan’s Citizen Group. This transaction is expected to enhance the ability of LVMH-owned brands such as TAG Heuer, Hublot, and Zenith to procure high-end Swiss movements on a large scale. Furthermore, this minority stake acquisition aims to strengthen the procurement capabilities for mechanical and solar quartz movements within LVMH’s watch division, which also includes jewelry brands like Bulgari and Tiffany.
Movements, which drive the watch and its complications, are a core element of the Swiss watch industry and are often referred to as the “heart of the watch.” While the detailed terms of this minority stake acquisition have not been disclosed, the deal will grant LVMH a certain level of influence over La Joux-Perret’s management strategy and business operations. Moreover, it positions LVMH to potentially exert influence should Citizen decide to sell La Joux-Perret or other Swiss-based watch-related assets (including Frédéric Constant, Angelus, and Arnold & Son) in the future.
La Joux-Perret, based in La Chaux-de-Fonds, Switzerland, currently produces approximately 150,000 movements annually, as reported in a recent HODINKEE article featuring the company. Its production line ranges from the G100, a mainstay three-hand movement, to the column-wheel chronograph movement L100, and even high-end tourbillon and monopusher chronograph movements. The company also manufactures the Solargraph movement, co-developed with TAG Heuer, a key technological component first integrated into that brand’s Aquaracer model.
The Solargraph movement is charged by sunlight or artificial light and does not require battery replacement. Just two minutes of direct sunlight provides enough power for one day of operation, while less than 20 hours of charging under strong sunlight enables it to run for six months. This movement is also used in the TAG Heuer Formula 1 re-edition models, which have gained popularity as LVMH serves as the title sponsor for the top-tier motorsport series. Furthermore, the two companies have extended their co-development of solar movements to include movements for Tiffany’s Rope by Tiffany line, with plans to continue collaborative development with other maisons within the LVMH group.
La Joux-Perret competes with other major movement suppliers for Swiss brands, primarily ETA (under the Swatch Group), Sellita, and Kenissi (where Tudor, a sister brand of Rolex, is the majority shareholder and Chanel is also an investor). LVMH was recently named as a potential buyer for movement manufacturer Vaucher Manufacture, held by the Sandoz Family Foundation. The French luxury maison Hermès holds a 20% stake in Vaucher and has right of first refusal in case of a sale.
The Sandoz family has previously explored selling its watchmaking assets but ultimately failed to reach an agreement and is said to have recently halted the sale process. Citizen has announced that following LVMH’s investment, La Joux-Perret will continue to operate independently as part of the Citizen Group. The company also stated its intention to continue supplying movements to other companies outside the Citizen Group and LVMH.
LVMH is the world’s largest luxury conglomerate, owning brands from Louis Vuitton to Moët & Chandon wines and champagnes. Its watch-related assets include LVMH’s various watch brands as well as the recently revived Daniel Roth and Gérald Genta. Led by CEO Jean-Christophe Babin of Bulgari, LVMH’s Watches & Jewelry division is one of the world’s leading watch groups, yet it lags behind competitors like Richemont, the Swatch Group, and Rolex in terms of both production volume and sales scale.
Jean-Christophe Babin commented on the investment in La Joux-Perret in a statement.
Toshio Tokura, President and CEO of Citizen Watch Group, commented.