Richemont Sells Baume & Mercier to Italy’s Damiani Group in Strategic Luxury Shift

Richemont and the Italian Damiani Group have signed a binding agreement under which Damiani will acquire full ownership of specialist Swiss watchmaker Baume & Mercier from Richemont in a private transaction. The move marks one of the most significant portfolio shifts in recent years for both companies.

Deal Overview and Strategic Rationale

Under the terms of the agreement, Richemont which has owned Baume & Mercier since 1988  will transfer the entirety of the 200-year-old Maison to Damiani, a family-run luxury group. Damiani’s portfolio already spans several jewellery brands, including Damiani, Salvini, Bliss and Calderoni, as well as artistic glassmaker Venini and multi-brand retailer Rocca. Richemont and Damiani stated that Baume & Mercier’s long-term growth potential is expected to benefit from the Italian group’s distribution capabilities, strong presence in the Italian market, and its alignment with the brand’s accessible luxury positioning. Richemont will provide operational services for at least 12 months after closing to support a smooth transition as Damiani integrates the business. The transaction is expected to close in summer 2026, subject to customary conditions. As with many strategic luxury transactions, financial terms were not disclosed by either party.

Industry Context: Market Pressures and Portfolio Shifts

The news comes amid broader challenges within the global luxury watch market. Demand for mid-priced mechanical watches has been uneven, particularly after a period of post-pandemic slowdown in China and elsewhere that weighed on several Swiss brands, including those within Richemont’s Specialist Watchmakers segment. Insiders had already signaled potential structural changes at Baume & Mercier late last year, with reports indicating that a potential management-led buyout and interest from external partners, including Damiani  were under discussion as part of Richemont’s strategic review of underperforming assets.

What This Means for the Watch Industry

For Richemont, the divestiture underscores a trend in luxury conglomerates refining portfolios to focus on higher-margin, deep-heritage brands such as Cartier, Vacheron Constantin, Jaeger-LeCoultre and IWC  while recalibrating offerings that sit lower on the price ladder. Baume & Mercier historically occupies an “accessible luxury” segment within Richemont’s Specialist Watchmakers category, appealing to customers seeking Swiss heritage at a comparatively moderate price point.

For the Damiani Group, the acquisition represents a strategic expansion into horology, bolstering its credentials beyond jewellery into watchmaking with a category heritage brand. Industry observers note that Damiani’s independent, family-managed structure  rare among global luxury players  may offer a freer hand to reinvest in product, distribution, and marketing for Baume & Mercier’s renewed global ambitions.

As the deal progresses toward its summer 2026 close, both sides will likely outline more detailed plans for Baume & Mercier’s future positioning, product strategy, and global retail footprint. For an industry that closely watches brand stewardship and heritage cultivation, this transfer from one storied luxury group to another will be a key development throughout 2026.