Richemont buys luxury Swiss watch firm

The Swiss group behind the luxury brands Cartier, Jaeger-LeCoultre and IWC has snapped up a small watch parts maker.

Richemont, the world's second-largest luxury goods group, has bought Varin-Etampage and Varinor – a manufacturer of components for watches, a gold refiner and a producer of semi-finished precious metals – for an undisclosed price. The deal will add to Richemont's technical knowledge in the expensive watch sector.

VVSA is a historic business partner of Richemont. Its three directors, who have sold their shares in the business, will stay on.

The Swiss watch industry has enjoyed growing sales in 2012, with August figures up 12.7 per cent.