16k Euro for a new UG. Are you buying one?

Evitzee · Dec 4, 2024

I believe many people are still hoping for a Blancpain-style bonanza where J-C Biver and Jacques Piguet bought the Blancpain name for CHF 21,500 in 1981 from SSIH, soundly developed the company and sold Blancpain and Piguet to the Swatch Group in 1992 for CHF 60,000,000. Ka-ching. But times have changed and capturing lightning in a bottle is very, very difficult. Trying to make Universal Geneve into a luxury brand will be very long and very difficult, and may not be possible.

paulmiami · Dec 4, 2024

https://www.hodinkee.com/articles/in-depth-universal-geneve-acquisition

Very balanced article, especially the information on how back in the day UGs were 1/3rd the price of Patek. In this context, the proposed msrp for the 36mm stainless Polerouter seems high.

Verdi · Dec 5, 2024

paulmiami
https://www.hodinkee.com/articles/in-depth-universal-geneve-acquisition

Very balanced article, especially the information on how back in the day UGs were 1/3rd the price of Patek. In this context, the proposed msrp for the 36mm stainless Polerouter seems high.

Thanks for sharing it. I missed this article on UG when it was published.
All points mentioned are 100% valid and in line with what I also think. Bear in mind that when it was written back in Jan, there was no indication on the pricing.
Put all those arguments in the context of 16k Euros starting price and matters look even worse for UG’s planned market strategy.

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paulmiami · Dec 6, 2024

https://www.chrono24.com/patekphili...37354517.htm?searchHash=b9ec0056_umsGwY&pos=1

The Hodinkee article was a real eye opener for me. Too bad grandfather didn’t buy a Patek 1518 instead as the 1940s 3x price difference would today be 25x vs a Tri Compax. To quote Hodinkee if UG was a “working man Patek”, then 16k euro for a simple 36mm steel watch seems high as there are gorgeous Speedy and Tudor alternatives at half the price. And these brands have uncomplicated impeccable history.

paulmiami · Dec 6, 2024

vibe
It seems like a really expensive and ambitious project to get UG up and going at that level. Breitling must be quite the cash cow. It’s also crazy that the brand sold for $70M. Was it just for the brand + IP or were there fixed assets?

Terms of the deal were not disclosed, which is the norm for PE. Someone mentioned the money is disbursed over 5 years. Perhaps there are contingencies. We don’t know. And keep in mind this is not a strategic buyer. So even before closing the deal they were thinking about their exit. Maybe this adds critical mass to Breitling and that’s the value? Who knows.