The Watches of Switzerland Group announced it has completed the acquisition of Deutsch & Deutsch, a family-owned luxury watch and jewelry retailer that has operated in Texas since the 1920s.
Deutsch & Deutsch runs four showrooms in Texas, located in El Paso, Laredo, McAllen and Victoria. The locations will continue to trade under the Deutsch & Deutsch name, reflecting the strength of the local brand as it approaches its centenary. Tad and Aladar Deutsch will remain with the business and continue to play key leadership roles across the showrooms following the transaction.
The retailer is an authorized distributor for brands including Rolex, Roberto Coin, Cartier, OMEGA, TUDOR, TAG Heuer, Breitling and IWC Schaffhausen. Watches of Switzerland said two of the four locations have recently undergone significant expansion and refurbishment to modern luxury standards, with plans underway to pursue similar upgrades at the remaining two showrooms.
For the financial year ended December 31, 2024, the four Deutsch & Deutsch showrooms generated combined annual revenue of $67 million, with profitability described as in line with the group’s existing U.S. retail business. Watches of Switzerland said it sees opportunities to enhance its product lineup by expanding access to the broader range of luxury watch and jewelry brands it sells.
The acquisition was structured as the purchase of 88% of Deutsch & Deutsch, with an option to acquire the remaining share capital. The company said strategic acquisitions remain a key pillar of its growth strategy and capital allocation framework, and it expects the transaction to deliver attractive financial returns consistent with its track record of prior showroom acquisitions.
Following the deal, Watches of Switzerland said it now operates 25 Rolex-anchored showrooms in the United States.
KEY QUOTES
“We have admired Deutsch & Deutsch for many years and see this value-accretive acquisition as an excellent complement to our existing US showroom network, strengthening our leading position in the luxury watch and jewellery market in the US. We look forward to combining Deutsch & Deutsch’s local expertise with the strengths of the Watches of Switzerland Group as we continue to grow our presence in this key market.”
Watches of Switzerland Group
