South African billionaire Johann Rupert is reshaping his luxury portfolio with the sale of Baume & Mercier, the nearly 200-year-old Swiss watchmaker, to Italy’s Damiani Group. Richemont, the Geneva-based luxury conglomerate Rupert controls, announced the agreement in January, with the deal expected to close this summer. While the financial terms were not disclosed, the sale includes a transition arrangement keeping Richemont operationally involved for at least a year.
Baume & Mercier, founded in 1830 in the Swiss Jura, earned a reputation for producing high-quality Swiss watches accessible to a broader audience. Over the past decade, however, the brand faced mounting pressures. Analysts estimated the company generated roughly 100 million euros in annual revenue while running at a loss, highlighting the difficulties of maintaining profitability in the accessible luxury tier.
Rising production costs, a persistently strong Swiss franc, higher gold prices, and evolving consumer preferences squeezed the middle of the market. While high-end mechanical watches from brands like Patek Philippe, Rolex, and Richemont’s Vacheron Constantin remained resilient, Baume & Mercier struggled to maintain its market position amid competition from both entry-level prestige brands and fashion watches.
Under Richemont CEO Nicolas Bos, who assumed leadership in 2023, the company has pursued a strategy of rationalizing underperforming brands. Baume & Mercier, with its Riviera and Clifton collections, no longer aligned with the group’s focus on high-margin luxury segments. The brand’s wholesale distribution model also conflicted with Richemont’s vertically integrated retail strategy.
Industry experts view the divestment as a logical portfolio adjustment. Luxury consulting founder Oliver Muller noted that Baume & Mercier’s DNA and price positioning no longer matched Richemont’s strategic direction, and the move allows Richemont to concentrate on its stronger performing Jewellery Maisons such as Cartier and Van Cleef & Arpels.
For Damiani, the acquisition represents a strategic entry into Swiss watchmaking. The Italian family-owned company, better known for jewelry, plans to leverage its existing retail network across Europe, Asia, and the Middle East, while opening select standalone boutiques to strengthen Baume & Mercier’s presence.
Damiani CEO Jerome Favier highlighted the synergy: the company gains a recognized brand with heritage and collections appealing to buyers seeking Swiss craftsmanship at accessible prices. The acquisition allows Damiani to expand its product portfolio while integrating Baume & Mercier into its established wholesale and retail infrastructure.
