Chronos Holding: Difference between revisions

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** [[Cyma]] ([[1969]]-)
** [[Cyma]] ([[1969]]-)
*** [[Tavannes Watch]] ([[1969]]-)
*** [[Tavannes Watch]] ([[1969]]-)
** [[Aureole]] ([[1973]]-)
* [[SAPIC]] ([[1969]]-)
* [[SAPIC]] ([[1969]]-)
* [[Sindaco]] ([[1972]]-)
* [[Sindaco]] ([[1972]]-)

Revision as of 23:56, 10 November 2024

Chronos Holding AG was an organization of Swiss watchmaking companies founded in 1966 and headquartered in Bienne. Its stated purpose was "Facilitate the merger of existing watch companies." The company purchased Ernest Borel, which became Synchron with the addition of Doxa and Cyma. It also owned a large share of SAPIC, owner of Jaeger-LeCoultre. But the group faced severe financial problems in the late 1970s and was dissolved in 1983.

History

Chronos Holding was established on April 14, 1966 to facilitate the concentration of existing watchmaking companies and brands. It was initially capitalized at 5 million francs, though it quickly grew much bigger. Gérard Bauer (president of the FH) was the chairman of the board, as the organization reflected his view of the necessarily evolution of the Swiss watch industry. Karl Obrecht (president of ASUAG) and banker Philippe de Weck (of UBS) served as first- and second-vice chairmen. Many other notable names in watchmaking, including Théodore Renfer and Pierre Renggli of ASUAG, also served on the board. Chronos Holding SA was founded by seven Swiss banks, ASUAG, and the FH. It was created to encourage mergers within the Swiss watch industry and prevent foreign buyouts of Swiss watch firms.

The organization was initially located at Rue de l'Argent 6 (Silbergasse 6) in Bienne, the FH building in the Neustadt Süd complex. It was transferred across the square to its own offices at Rue de la Gare 16 the following year.

The organization made its first acquisition on October 13 of that same year, purchasing Cyma Watch Co. for 2 million francs. This was financed entirely by the issuance of new shares, increasing share capital of Chronos Holding to 7 million francs. At its shareholder meeting on September 8, 1967, 50,000 new shares of 100 francs were issued and purchased, increasing share capital to 12 million francs.

On June 28, 1968 Chronos Holding purchased Ernest Borel & Cie for 3 million francs. This was accomplished by issuing 3,000 bearer shares valued at 500 francs each and 750 bearer bonds at 2000 francs each, increasing share capital to 13.5 million francs. This sum was given to Raoul de Perrot, owner of Enest Borel. The company issued 50,000 new registered shares of 100 francs each on October 29 of that year, increasing share capital to 18.5 million francs.

On December 17 of that year Chronos Holding purchased Manufactures des Montres Doxa SA for 4 million francs. This involved 2000 bearer shares of 500 francs each as well as 3000 bearer bonds of 1000 francs issued to Max Jaggi. Jean-Louis Borel of Ernest Borel was appointed to the board of directors that same day, replacing Silvan Kocher, who died. The next day, December 18, Ernest Borel & Cie SA changed its company name to Synchron SA in anticipation of becoming a holding company for the Ernest Borel and Doxa brands. On March 27, 1969, Synchron becomes "Synchron SA, Fabriques d'Horlogerie Réunies" as Doxa and Cyma are merged into it. The new company is lead by Jean-Louis Borel and Ernest Schnegg and is valued at 2.375 million francs thanks to the investment of 1.625 million francs from Chronos Holding.

Chronos Holding added a second group of watchmakers on February 10, 1969. Société Anonyme de Participations Industrielles et Commerciales was purchased from Henri Niess for 3.3 million francs, including 1.65 million in bonds and the rest in shares. SAPIC had been established in 1927 by the LeCoultre family to hold their watchmaking operations, adding Paris-based Etablissements Ed. Jaeger in 1937 to form Jaeger-LeCoultre. Vacheron & Constantin was also brought in that year but was bought out in 1965 by George Ketterer. This was likely the impetus for Niess to sell SAPIC to Chronos Holding. As of 1972, Chronos Holding owned 23% of the shares of SAPHIR Group, which included Jaeger-LeCoultre and related companies. Henry-A. Favre served on the board representing these interests.

In 1972 the company relocated to the high-profile Congress House tower, Rue Centrale 60. Contemporary reports show that Chronos Holding was financially stable, with Synchron recently becoming profitable. In a speech to shareholders, Gérard Bauer described further actions the company would take, including offering consultancy services to watch manufacturers, financial support for watch groups in the process of being created, and creating new internal concentrations. Chronos Holding had acquired Sindaco SA and Ogival SA in January 1972. Gruen Industries of New York was still suffering from the slowdown in business in the United States, however. Board members Gugger, Renfer, and Strasser requested to leave the firm, while bankers Haeni, Voegelin, and de Weck did not seek re-election, replaced by Brasey, Favre, Haas, Haemmerli, Krebs, and Rentsch.

The firm showed a profit of 196,000 francs in 1972 and 404,000 francs the following year. These profits were allocated to the "provision for risks on participations" rather than reinvested. Jack W. Heuer joined the board in 1973, replacing the recently deceased Henry A. Favre.

By 1976, the consolidated balance sheet of Chronos Holding reflected significant devaluation, with capital stock listed at 21,150,000 francs, though the actual market value was speculated to be far lower. Holdings like Synchron, Sindaco SA in Ticino (70% owned by Chronos), Gruen Industries of New York (19% owned by Chronos), and SAPHIR (23% owned by Chronos) suffered major losses, and the valuations on the balance sheet could no longer be justified. Synchron, owned entirely by Chronos, had been reduced to a sales operation, while Gruen’s performance was reportedly in decline. The overall value of these assets was significantly slashed, marking a drastic erosion of the company's original capital.

On November 9, 1977, the company reduced its share capital by a factor of 10 by reducing the value of all shares to 10% of their previous value. Despite efforts to stabilize its financial health, Chronos Holding faced challenges in multiple areas, including 7.3 million francs in loans and advances to struggling affiliates, particularly the SGT Group (7 million francs alone). With dwindling resources and persistent recessionary pressures, the company struggled to maintain solvency, impacting not only its financial position but also the morale of its workforce. Observers questioned the management’s ability to handle the crisis, despite the high-profile expertise on the board of directors. Critics noted that, despite the board’s experience, the mismanagement and deteriorating state of its finances reflected poorly on leadership, with many wondering how the company’s issues had remained hidden and allowed to worsen to this extent.

Most of the board of directors resigned the following June, and the company relocated to Faubourg du Lac 6, the offices of ASUAG. Chronos Holding announced it would suspend interest payments and loan re-payments in June of 1979. On December 19, 1983, at a special meeting of shareholders, the board decided to dissolve the company. Chronos Holding was deleted in December 1986, having been liquidated.

Holdings

Timeline

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