Today Richemont confirmed the rumoured sale of its entry-level Baume et Mercier brand to the Damiani Group, a key distributor of the brand in Italy through its retail chain Rocca.

While Baume et Mercier is understood to not be profitable, the acquisition should give Baume et Mercier the home-field advantage, as Italy is one of the most important markets for the brand today. According to the Baume et Mercier website, 325 stores in Italy carry the brand, compared to just 150 in France, 130 in the United States, and only 66 in Mainland China.

A leaner Baume et Mercier focused on the Italian market, in the same vein as Eberhard & Co., is likely in the long-term, but in the meantime it must be untangled from Richemont. The deal is expected to close this summer, after which Richemont will provide “operational services” for the brand for at least 12 months.

It is unclear whether the brand’s “Baumatic” movements with 5-day power reserves will survive the transition, as there are made by ValFleurier — Richemont’s counterpart to ETA.

For more information, visit Richemont.com.