One of the badly kept secrets in Swiss watchmaking has just come true: Breitling has acquired Gallet. Backed by Swiss private equity firm Partners Group, Breitling has been slowly building itself into a group of brands. The Gallet acquisition comes a little over a year after Breitling took over Universal Genève.

According to Breitling chief executive Georges Kern speaking to Fratello Watches, Gallet will be positioned in the sub-CHF3,000 range, topping out at CHF5,000. This puts its squarely in the segment of established brands like Tudor and Longines, which enjoy unparalleled economies of scale, as well as online-only micro brands that lack the overhead of established brands.

The rationale of acquiring Gallet is clear. As Mr Kern mentions in his Fratello interview, it gives Breitling a stronger position vis a vis third-party retailers since the brand can now offer products across the price spectrum, with Universal Genève at the very top. This is particularly relevant as many brands owned by luxury groups like Richemont continue to withdraw from third-party retailers.

Another factor that is left unsaid in the interview is the enlarged group presumably improves the odds of an exit for Breitling’s private-equity backers. Partners Group bought a majority stake in Breitling at end 2022 from CVC Capital, another private equity firm that bought Breitling in 2017. According to news reports at the time, CVC divested part of its Breitling stake at over five times the 2017 valuation.

Underlying the growth of the Breitling group is whether the owners are in it for the long haul to build the brands, or merely to bulk up the group enough to go public or sell it.