Citizen Watch Company is in acquisition mode as it announced that it has entered into an agreement to acquire Frederique Constant Holding SA. Citizen is implementing a multi-brand strategy and seeking to expand its brand portfolio by acquiring Swiss brands. This particular acquisition includes Frederique Constant Holding SA, Alpina, and DeMonaco. This acquisition will enable Citizen to further strengthen its market position, offering consumers a variety of products ranging from accessible timepieces to accessible luxury watches. The present management personnel and staff will continue to hold the same positions after this acquisition.
Speaking about this new development, Toshio Tokura, chief executive officer of Citizen Watch Company said: “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. With the acquisition of Frederique Constant, the Citizen Watch Company 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 that Citizen will be able to achieve great synergy for sharing technologies and infrastructures in the future.
Frederique Constant in its current form was established in 1988. The company is involved in all stages of watch production, from initial design to final assembly and quality control. Frederique Constant develops, manufactures, and assembles in-house calibers, offering 19 different versions since 2004. Frederique Constant watches are defined by their quality, precision in design and manufacturing, and accessible prices. Consequently, their perceived value -which stems from the quality of design, materials, and manufacture are a key component of their success. Each watch is assembled by hand, employing the latest equipment and extensive controls, to ensure maximum quality and durability.
Earlier in 2012, Citizen had acquired La Chaux-de-Fonds based Prothor Holding SA, owner of movement specialist La Joux-Perret, component maker Prototec as well as the watch brand Arnold & Son. La Joux-Perret’s clients include many of the Swiss industry’s big names including Hublot and Corum. One of the movements La Joux-Perret is known for is the modified Valjoux 7750, to include flyback, rattrapante or tourbillon. Citizen excels at high-end electronic watches like the Satellite Wave Eco-Drive. Citizen’s last major purchase was Bulova in 2008.
The brand is already a market leader in mass watches and has made significant progress in making higher end mechanical watches. With these latest acquisitions, Citizen is destined to take watchmaking to another level.
