Swiss watchmaker Breitling has seen its valuation cut by as much as half compared with 2023 levels, as private equity owners CVC and Partners Group review strategy amid weaker-than-expected performance, according to a report by the Financial Times.
The luxury brand has struggled with an aggressive store expansion, subdued demand for high-end watches, and US tariffs on Swiss exports, pressuring returns for both buyout firms.
CVC initially acquired Breitling in 2017 for around €800m and sold a majority stake to Partners Group in 2023 for $4.5bn, retaining roughly 20% at the time. Partners Group now holds a controlling position with more than 50% of shares.
The report cites run unnamed sources as revealing that CVC has marked down its remaining stake to about 0.5 times invested capital, based on the level at which it reinvested in 2023. Partners Group meanwhile, values its holding at roughly 0.7 times, which a person close to the firm said was because it invested at a lower valuation in 2021 than it did in 2023.
Both firms maintain joint control over the company, with Partners co-founder Fredy Gantner chairing the board.
Breitling’s sales momentum has cooled since 2022. Industry estimates suggest a 3% decline in 2025, underperforming the broader Swiss watch market, with UK sales falling 25% and US performance pressured by competition from TAG Heuer and Tudor. Moody’s downgraded the company’s debt last year, citing a sharp earnings decline exacerbated by increased fixed costs from the store expansion, as well as high leverage and historical borrowing to pay dividends.
CVC and Partners Group are reportedly considering cost-cutting measures while continuing to invest in growth initiatives, including brand acquisitions and high-profile sponsorships. Despite recent headwinds, Partners Group insiders remain confident that Breitling could emerge as a strong IPO candidate between 2027 and 2029, with long-term prospects underpinned by its chronograph heritage and aviation branding.
