Audemars Piguet makes a promising investment in a key supplier

Audemars Piguet (AP) has acquired a majority stake in Inhotec SA, a renowned company that specialises in micromechanics and precision machining – based in Le Locle, Switzerland. Founded in March 2011, Inhotec has been a key supplier to AP for years. AP celebrates its 150th anniversary this year.

“This investment builds on the longstanding relationship between the two companies and reflects a shared long-term industrial vision while strengthening Inhotec SA’s position within the Swiss watchmaking industrial ecosystem and supporting its long-term development trajectory. It also demonstrates Audemars Piguet’s commitment to preserving and strengthening both the Swiss watchmaking industrial ecosystem and its own long-term industrial independence.”

Under the terms of the investment:

• AP will provide strategic guidance and financial support to Inhotec.
• Inhotec will operate as an autonomous company and gets to use its own name.
• It will continue to serve its existing and future customers.
• Mr. Alexandre Eme – Inhotec’s founder and CEO – will remain a significant minority shareholder “ensuring continuity of operations and alignment with the company’s long-term vision. He will continue to serve as CEO and Chairman of the Board, remaining a key driver of Inhotec’s success.”

Image: Inhotec specialises “in the production of high-precision watchmaking blanks and components.” With their extensive range of services, they help watch brands transform their ideas and designs into reality.

“This partnership marks an important milestone in Inhotec’s history. Audemars Piguet’s investment is a strong vote of confidence in our team, our expertise, and our long-term potential. By joining forces, we are creating the conditions for Inhotec to continue innovating and serving the entire watchmaking industry.” – Alexandre Eme, Founder and CEO of Inhotec SA.

Image: This beautiful structure is the Musée Atelier Audemars Piguet – the brand’s museum and a venue for horology masterclasses (for kids too), immersive experiences, and more.

“This investment is built on shared values. It is about consolidating strategic key skills and supporting the continuity of an expertise that is essential to the future of Haute Horlogerie, not only for Audemars Piguet, but for the entire industry.” – Lucas Raggi, Chief Industrial Officer at Audemars Piguet.

Our Thoughts

While terms like “in-house” and “manufacture” are frequently used in watchmaking, it is specialist firms like Inhotec that play a critical role in sustaining the industry. They are the quiet figures of the Swiss watch industry. I recall it was AP and MB&F that brought in much needed transparency in the industry, giving credit where it is due.

AP’s majority investment in Inhotec represents vertical integration – a strategic step in becoming “more in-house.” This is a strategy used by Patek Philippe and Vacheron Constantin (VC) among others, and also groups such as LVMH, Richemont, and Swatch Group. VC’s acquisition of “Haut de Gamme” in 1998 – a specialist watch movement designer and manufacturer in the Vallée de Joux – helped the brand with its phenomenal resurgence during the mid-1990’s and onwards.

Image: AP’s iconic Royal Oak is one of the most sought after watch collections in the world.

While brands compete on the product front, they also cooperate with each other on the production and supply front. F.P. Journe and VC jointly owned a dial factory – Les Cadraniers de Genève (F.P. Journe eventually bought out VC’s stake). A. Lange & Söhne (Lange) obtains its watch cases from four suppliers, one of them being AP! Lange is also known to supply its in-house hairsprings (one of the few brands who make their own hairsprings) to other brands. So it does not come as a surprise that Inhotec will continue to serve other customers under AP’s majority ownership.

We wish both AP and Inhotec all the best, and hope they go from strength to strength with this strategic acquisition.

Please click here, here, and here to read our earlier coverage on AP.

The header image is AP’s Calibre 7138, their new generation automatic perpetual calendar movement. All calendar corrections are performed via the “all-in-one” crown, without the need for any pushers on the side of the case. Its possible that Inhotec had a role in the development of this calibre.

Image credits: Audemars Piguet and Inhotec SA’s respective websites.

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