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Chanel is buying a minority stake in Swiss watch brand MB&F in a deal that will give the independent watchmaker financial security while boosting the French fashion brand’s standing in the high horology industry.
Known for its cutting-edge designs and innovative watch movements, the Max Büsser & Friends (MB&F) brand will sell a 25 per cent stake to Chanel, the Geneva-based company said in a statement on Thursday (Aug 22).
The stake sale “was our responsibility, in today’s very favourable context and with our management team in its prime, to take this major step to ensure our long-term future,” founder and creative head Maximilian Büsser said in the statement.
Financial terms of the deal were not disclosed. In 2023, MB&F crafted 419 wristwatches and had revenue of 45.4 million Swiss francs (S$69.7 million).
The Chanel agreement promises to bring stability to the 19-year-old watchmaker amid an industry-wide downturn in demand for expensive timepieces after a pandemic-era boom. Büsser will retain a majority 60 per cent stake in the business, while MB&F’s head of R&D and production, Serge Kriknoff, owns a 15 per cent stake. Both executives will remain with the company.
MB&F makes intricate, design-oriented timepieces that can resemble animals including spiders, panda bears and bulldogs as well as objects such as cars and spaceships. It also makes more traditional shaped watches. The brand generates waitlists for buyers wanting their products despite prices that can reach above US$100,000 a piece.
For Chanel, the deal adds credibility to its watchmaking operations. The French fashion house makes about 75,000 of its own branded watches per year with sales of about 400 million Swiss francs, according to Morgan Stanley estimates. That makes it among Switzerland’s 25 biggest watchmakers.
Chanel has previously made minority investments in other independent Swiss brands, including Romain Gauthier in 2011 and FP Journe in 2018.
The purchase of the MB&F stake is part of Chanel’s “long-term strategy to continue to preserve, develop and invest in specialist know-how and expertise, reaffirming our position in high-end watchmaking,” Frédéric Grangié, Chanel’s president of watches and fine jewellery, said in the statement. BLOOMBERG
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