Citizen to buy Bulova
Posted by wristwatch on October 5, 2007
According to this excerpt from Bloomberg and from the Citizen Japan website, Citizen is set to acquire Bulova. So this means brands like Accutron and Harley Davidson are going to be manufactured by my favorite watch company! (wohoo!) This move is supposed to cement Citizen’s hold on the North American market.
“By Mari Murayama and Cotten Timberlake
Oct. 4 (Bloomberg) — Bulova Corp., the 132-year-old watchmaker founded by a Bohemian immigrant in New York, will be sold to Citizen Holdings Co. of Japan by Loews Corp. for 28.8 billion yen ($247 million).
Citizen, which announced the transaction in a statement distributed today at the Tokyo Stock Exchange, is buying its smaller rival to expand in the U.S. Both companies sell their branded watches in the U.S. through department and other stores. Many of their timepieces are priced less than $500.
New York-based Bulova, which produces watches under the Bulova, Caravelle, Accutron and Harley-Davidson names, generated 23.8 billion yen in sales last year, Citizen said. Revenue for Tokyo-based Citizen was 336.1 million yen in 2006.
Bulova was founded by Joseph Bulova, a 23-year-old immigrant who opened a jewelry shop on Maiden Lane in New York in 1875.
The acquisition, which is set to close in January, won’t affect Citizen’s earnings outlook for this year, the company said.
Citizen fell 23 yen, or 2 percent to 1,127 yen on the Tokyo Stock Exchange today. Loews rose 38 cents to $49.59 at 4:03 p.m. in New York Stock Exchange composite trading.
Citizen watches are sold at department stores like Macy’s Inc. and J.C. Penney Co., specialty chains such as Zale Corp., and small watch and jewelry shops. Men’s Citizen watches range in price from $135 to $550 and Bulova watches are priced at $150 to $699 on Macys.com.
The companies compete with privately held Timex Corp., which is based in Middlebury, Connecticut, and calls itself the largest U.S. watch manufacturer.
Japan’s Fast Retailing Co., owner of the Uniqlo chain, also sought U.S. growth in its failed bid in August for the Barneys New York luxury chain, which was bought instead by a Dubai government-owned investment firm.”