Harry Winston Diamond Corp. (HW.TO,HWD: Quote) announced it has entered into an agreement to sell its luxury brand diamond jewelry and timepiece division, Harry Winston Inc., to The Swatch Group Ltd. (SWGNF.PK,SWGAF.PK) for US$750 million plus their assumption of up to US$250 million of pro forma net debt. Harry Winston Diamond has agreed to trade under a new name as of the time of closing of the transaction and will therefore change its name to Dominion Diamond Corporation. Harry Winston will retain an ongoing relationship with The Swatch Group. The two companies will also explore the opportunities for a joint diamond polishing venture.
The company’s Chairman and Chief Executive Officer, Robert Gannicott, said, “This transaction represents a sound return on our original investment. It will leave us well equipped to realize upstream opportunities in an environment where cash has become a strategic resource while preserving and expanding our relationship with the downstream diamond business.”
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by RTT Staff Writer
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