The world’s largest luxury group, Louis Vuitton Moët Hennessy (LVMH), just announced that it has taken a minority stake in Swiss movement manufacturer La Joux-Perret, an important supplier to the group’s watch brands as well as the industry at large. Owned by Citizen Group, La Joux-Perret also controls a few of its own brands, including Arnold & Son and Angelus, that will remain independent.

Initial thoughts

LVMH’s investment in La Joux-Perret marks a logical next step in its long-term effort to consolidate movement production within the group. Such arrangements are becoming increasingly common — Hermès and Chanel, for instance, have taken similar minority stakes in movement makers Vaucher and Kenissi, respectively.

LVMH, which owns TAG Heuer, Bulgari, Zenith, Hublot, and of course Louis Vuitton, had already hinted at this direction. Last year, Frédéric Arnault, son of Bernard Arnault and head of LVMH’s watch division, proposed expanding Zenith’s manufacture to supply movements to other group brands. That plan partly materialised, with Zenith now producing Bulgari’s Solotempo calibre. However, the idea of Zenith supplying a high-volume brand like TAG Heuer always seemed unlikely, which helps explain this latest move.

The La Joux-Perret Cal. G100, a movement which competes in price with offering from Kenissi. Image – La Joux Perret

There had long been speculation that LVMH sought a large-scale movement supplier. The Swatch Group has ETA as its industrial backbone, while Richemont relies on ValFleurier for many of its so-called in-house calibres. Now, LVMH appears to have found one of its own, even if Citizen remains the majority owner.

A brief history of La Joux-Perret

What we now call La Joux-Perret began life in 1990 as Jaquet SA. Founded by Jean-Pierre Jaquet, the company was established to supply the growing fine watchmaking segment with specialised movements, including shaped calibres and complications. According to NZZ, the firm’s two largest clients during the early years were Franck Muller and Girard-Perregaux.

The initial venture didn’t last, because Mr Jaquet also ran an elaborate counterfeiting ring, and masterminded a slew of brazen (and sometimes armed) robberies to supply it. The other shareholders renamed the firm to La Joux-Perret in 2005, following Mr Jaquet’s arrest two years prior.

The firm continued to operate under its own name, supplying specialised movements and parts to brands big and small. In 2010 it acquired Arnold & Son from a former customer, which became the manufacture’s house brand.

The Arnold & Son Luna Magna.

Then, in 2012, Citizen acquired the company for around CHF65 million, with ambitions of entering the high-volume Swiss movement market, which it did with a new calibre family based on Citizen’s Miyota 9000 series. However, the company continued as a specialist supplier of customised movements, such as Breitling’s B21 tourbillon chronograph.

Both LVMH and La Joux-Perret emphasise the 2022 collaboration with TAG Heuer that brought Citizen’s Eco-Drive solar technology to a Swiss movement for the first time. La Joux-Perret also supplies parts and subassemblies to multiple LVMH companies, including the Louis Vuitton brand.

Assembly of solar quartz movements for TAG Heuer. Image – La Joux-Perret