“Meeting François-Henri Pinault was decisive in my decision”
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Christophe Roulet
Editor-in-chief, HH Journal
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PPR has taken a 23% stake to become a minority shareholder in the Sowind Group, owner of the Girard-Perregaux and JeanRichard brands. Luigi Macaluso, Chairman and CEO of Sowind, talks about the transaction that was announced in June.
Rumours had been rife for months about a luxury name taking a stake in Sowind Group, owner of the Girard-Perregaux and JeanRichard brands. Now the rumours have been confirmed: French giant PPR, whose portfolio boasts Gucci Group, Yves Saint Laurent, Boucheron and Bedat & C°, has just bought a 23% stake in the Swiss watch group. Luigi Macaluso, Sowind’s chairman, explains the reasons behind this transaction.
What made you enter into this alliance with PPR?
This agreement gives Sowind Group the means to fully develop its potential for growth and innovation by joining forces with one of the major players in the international luxury business. In today’s world, the only way for a global company to achieve solid, sustainable growth is to forge relations with reliable and extremely high-quality partners.
Why choose PPR over one of the other major names in luxury?
Meeting François-Henri Pinault was decisive in my decision. We share the same business values and we envision this partnership in the same way. What’s more, our groups have built their competencies on shared values of excellence and an entrepreneurial spirit passed on through a long family tradition. We also bring complementary strengths to the partnership.
Why an initial stake of 23%? Why not more?
This stakeholding is a means for both parties to achieve joint objectives through shared expertise. Sowind Group joins forces with a major group that has solid experience of the international luxury market, while PPR confirms its entrance into the world of Swiss Fine Watches.
Can PPR take a majority share of Sowind Group under this agreement?
No. PPR can, under the agreement, increase its stake in the future but my family and I retain control and will continue to do so.
Financially, what are the terms of the agreement?
That’s a private matter.
What synergies do you envisage with Gucci Group?
Gucci Group and Sowind Group will be able to exchange knowledge and share expertise in R&D, design, brand management, distribution and sourcing, even initiating joint development projects in the longer term. Cooperation between the two will be made easier by the fact that I will become a member of the Gucci Group Management Committee and the Boucheron Board of Directors while François-Henri Pinault and Robert Polet will become directors on the Sowind Group Board.
Will company strategy change as a result of this alliance?
Why would we question one of our greatest strengths? PPR has chosen to join forces with a Fine Watch company that draws on a longstanding tradition and combines innovation and technology to develop a complete range of movements and watches. We will build on this new impetus to consolidate and pursue our brand strategy.
Does the agreement provide for PPR to invest in Sowind Group?
We have entered into a long-term industrial and cooperation agreement, which could imply reinforcing structures if this is seen as contributing towards objectives.
You remain at the head of the group. What role will your two sons play?
My sons also retain their posts and responsibilities, Stefano as VP Strategic Marketing at Girard-Perregaux, and Massimo as Vice President at JeanRichard.
The word was that a transaction would be sealed in March. Why did it take until June?
Because you can’t believe everything you hear!
How do you see the future for Girard-Perregaux and JeanRichard?
This promises to be a very positive experience. Both the quality of Girard-Perregaux and JeanRichard products and our efficiency will benefit from these synergies in a performance-driven climate whose common denominators remain dreams and emotions.
