Reflections on the Sale of Baume & Mercier: What Happens When a Luxury Brand Changes Hands?

Last Thursday, Richemont announced the sale of Baume & Mercier to the Damiani Group. When a luxury brand undergoes a change in ownership, it almost guarantees seismic shifts in everything from artistic direction to business strategy.

Baume & Mercier was acquired alongside Cartier, Piaget, Montblanc, and Chloé when Richemont was founded in 1988. Yet, as Richemont’s portfolio expanded and the brand equity of maisons such as A. Lange & Söhne, Cartier, and Vacheron Constantin soared in recent years, Baume & Mercier found itself somewhat neglected.

In Defense of a Good Name

With several Richemont maisons enjoying unprecedented sales and brand prestige, the group seems intent on being associated only with high-end luxury. In this context, Baume & Mercier—an entry-level luxury brand—has languished in the shadows. Richemont’s decision to part ways with the maison now offers a glimmer of hope for its revival.

I have always had a soft spot for Baume & Mercier, known for delivering handsome chronograph and uncomplicated watches under US$4,000. Its understated marketing belies the craftsmanship within—I still remember seeing a friend’s stately Baume & Mercier perpetual calendar, acquired for under US$8,000, and thinking: this is a brand with untapped potential. Its history and accessibility make it one of the few maisons where quality, value, and heritage intersect.

A New Chapter for Frères Baume

Founded as “Frères Baume” (The Baume Brothers) in 1830, the company became Baume & Mercier in 1918 when third-generation watchmaker William Baume partnered with Paul Mercier in 1918. Together, the duo won prestigious chronometric awards, set records in precision timekeeping, and earned the Poinçon de Genève.

Now, under Damiani—owner of luxury brands such as Salvini, Bliss, Rocca, Calderoni, and glass art house Venini—the brand embarks on a new chapter.

History shows that change in ownership can rejuvenate a brand. Consider Breitling, recently revitalized under Partners Group, or Tiffany & Co., Daniel Roth and Bulgari, reinvigorated after joining LVMH. As you might be aware, their overhauls led to the creation of many unforgettable and highly coveted timepieces.

Even as watchmaking has become more democratized, with a flood of creative options at Baume & Mercier’s price point, the maison retains a distinguished heritage that its new owner can leverage.

Damiani is a promising steward: in Italy, where Baume & Mercier enjoys hundreds of points of sale, particularly through multi-brand retailer Rocca, it already has deep market familiarity. There is also potential for creative crossovers with Damiani’s other maisons. However, being deconsolidated from Richemont means Baume & Mercier will likely need a new external or in-house movement supplier.

Industry-wide Implications

Not all brand transitions end happily. Without mentioning any names, history contains examples where new leadership eroded luxury watch brands’ value through overproduction, uninspired design, or poor strategic choices. Missteps in product, pricing, or marketing can swiftly undo decades of brand equity.

Baume & Mercier’s sale has also reignited speculation that other luxury groups may be more willing to deconsolidate underperforming marques, focusing on high-margin, prestige-driven brands. A joint statement from Richemont and Damiani on January 22nd emphasized their shared optimism: “Richemont and the Damiani Group believe that Baume & Mercier’s long-term potential will be best realized as part of the Damiani Group”.

Richemont will also provide operational support to Baume & Mercier, and Damiani for a minimum of 12 months after this deal has been inked.

Although Baume & Mercier has reportedly struggled with profitability for years, the faith of a new owner in its potential speaks volumes. With careful stewardship, strategic reinvention, and an appreciation for its heritage, Baume & Mercier could reclaim a place in the spotlight—not just as an accessible luxury brand, but as a maison with renewed creative and commercial relevance.