Swiss luxury retailer Kirchhofer for sale

Swiss luxury watch and jewellery retailer Kirchhofer is up for sale, Reuters reports.

The family owned company, with annual sales of about US$302 million, is thought to produce a net profit of around $60 million annually.

Reuters reported that three independent sources confirmed Credit Suisse has been engaged to sell the business.

Kirchhofer sells most famous Swiss watch brands along with jewellery, cosmetics and leather goods. These days it focuses especially on Asian customers.

Estimate of the value of the company range between five and 10 times the net profit, which calculates at between $300 million to $600 million.

Likely suitors would include luxury retail giants Kering, LVMH and Richemont, along with private equity investment companies interested in expanding the brand internationally.

The business is currently owned by Juerg Kirchhofer, the son of founder Fritz Kirchhofer who started the retailer in 1944. It has 10 stores, mostly in tourist cities in Switzerland.

In a statement to Reuters, Kirchhofer’s finance head, Hans Wolf said no decision had been made to sell the company as yet.

“Mr Kirchhofer has reached retirement age, which does not necessarily mean he wants to retire soon. Different options are being reviewed and analysed at the moment for the future of the company,” he said.