PARIS -(Dow Jones)- French luxury giant LVMH Moet Hennessy Louis Vuitton SA (LVMUY) Thursday unveiled plans to buy high-end Swiss watchmaker Hublot group. In an e-mailed statement, the world's largest luxury group said the Hublot brand, which has recently been introduced in China and India, will complement LVMH's watch brands TAG Heuer, Louis Vuitton, Dior Montres, as well as watches sold under jewelry brands Chaument, Fred and De Beers. The group declined to provide financial details on the transaction but LVMH Financial Director Jean-Jacques Guiony said Thursday the price paid reflected more reasonable multiples than other acquisitions the group has made in the recent past. Guiony said the price was around 12 times Hublot's estimated revenues in 2008, but did not provide the company's estimate of 2008 sales. Hublot generated sales of CHF150 millon in 2007, LVMH said, adding it expects a "very significant" increase in revenue in 2008. Hublot's operating margin was 20% in 2007, Hublot Chief Executive Jean-Claude Biver said Thursday at a press conference on the deal. The LVMH watches and jewelry division's operating margin in 2007 was 17%. Biver added Hublot has potential to double sales in the next five years. One of the company's watch collections has a selling price range of EUR8,000 to over EUR30,000 per watch, according to the release. LVMH was advised by Michel Dyens & Co. on the transaction. Company Web site: www.lvmh.com -By Mimosa Spencer and Jocelyn Jovene, Dow Jones Newswires; +33 1 40 17 17 73; mimosa.spencer@dowjones.com -0 -
