Chronos Holding

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

• Synchron (1968-)
  • Ernest Borel (1968-)
  • Doxa (1968-)
  • Cyma (1969-)
    • Tavannes Watch (1969-)
  • Aureole (1973-1975)
• SAPIC (1969-)
• Sindaco (1972-)
• Ogival (1972-)

Timeline

• 1966, April 14 - Chronos Holding SA is established in Bienne; it is a public limited company with the aim of "facilitating the concentration of existing watchmaking companies and their brands, to take an interest in all watchmaking or watchmaking companies, by participating in their capital and managing these participations, all in the manufacturing and sale of the finished product"; share capital is 5,000,000 francs divided into 50,000 shares of 100 francs each; the board of directors is composed of President Gérard Bauer (FH), First Vice President Karl Obrecht (ASUAG), Second Vice President Philippe de Weck (UBS), Jean Hegetschweiler, Théodore Renfer, Pierre Renggli, Charles Blum, René Gugger, Numanin Jeannin (Olma), Silvan Kocher (Eska and the FH), Hans Kurth (Certina), Roger Lévy, Michael Meyrat, Raoul Perret, François DuPasquier, Paul Tuetey, banker Max Häni, Hans Strasser, and banker Arnold Voegelin; the offices were at Rue de l'Argent 6 in Bienne
• 1966, October 13 - At its general meeting, Chronos Holding increases its share capital from 5,000,000 francs to 7,000,000 francs by issuing 4,000 shares 500 francs each; these shares are fully released by the contribution made by Amir SA of La Chaux-de-Fonds consisting of the entire share capital of Cyma Watch Co. SA (1200 shares with a nominal value of 1250 francs each), of claims against Cyma Watch Co. SA of 1,500,000 francs for a total takeover price of 2,000,000 francs; Raoul Perret is no longer a member of the board of directors; Henry Favre is added
• 1966, December - Administrator Jean Hegetschweiler becomes a director, Jean-Robert Bugnion is added to the board
• 1967, June - Offices are transferred to Rue de la Gare 16 in Bienne
• 1967, September 8 - The company increased its share capital from 7,000,000 to 12,000,000 francs by issuing 50,000 registered shares of 100 francs each
• 1968, June 28 - Share capital is increased from 12,000,000 to 13,500,000 francs by issuing 3,000 bearer shares of 500 francs, fully released by the contribution made to the company by Raoul de Perrot of the entire share capital of Ernest Borel & Cie SA; the takeover price of this asset was set at 3,000,000 francs; in addition to the 3000 bearer shares with a nominal value of 500 francs each, the company issues to Raoul de Perrot 750 bearer bonds of 2000 francs each
• 1968, October 29 - Share capital is increased from 13,500,000 to 18,500,000 francs by issuing 50,000 new registered shares of 100 francs each
• 1968, December 17 - Share capital is increased from 18,500,000 to 19,500,000 francs by issuing 2000 new bearer shares of 500 francs, fully released by the contribution made to the company by Max Jaggi of the entire share capital of Manufactures des Montres Doxa SA (1000 bearer shares of 1000 francs each, fully released); the takeover price of this asset was set at 4,000,000 francs; in addition to the 2000 bearer shares of 500 francs each, the company issues Max Jaggi 3000 bearer bonds of 1000 francs each; Jean-Louis Borel was appointed a new member of the board of directors; Silvan Kocher, who died, is no longer a member of the board
• 1968, December 18 - Ernest Borel & Cie SA changes its company name to Synchron SA
• 1969, February 10 - Share capital is increased from 19,500,000 to 21,500,000 francs by issuing 3300 bearer shares of 500 francs, fully released by the contribution made to the company by Henri Niess of 3300 bearer shares of 300 francs each of the Société Anonyme de Participations Industrielles et Commerciales; the price of this asset was set at 3,300,000 francs; in addition to the 3300 bearer shares of 500 francs each, the company issues Henri Niess 1650 bearer bonds of 1000 francs each
• 1969, March 27 - Synchron SA, Fabriques d'Horlogerie Réunies is established, merging Ernest Borel with Cyma Watch Co SA of La Chaux-de-Fonds and Manufacture des Montres Doxa SA of Le Locle; the new company, a subsidiary of Chronos Holding, is valued at 2,375,000 francs by issuing 1625 registered shares of 1000 francs each, funded by Chronos Holding
• 1970, January - Jean-Robert Bugnion is appointed deputy director
• 1971, February - The signature of Deputy Director Jean-Robert Bugnion is extinguished
• 1971, September - Philippe de Weck is no longer second vice-president, but remains a member of the board of directors; Arnold Voegelin is appointed second vice-president
• 1972, January - Chronos Holding acquires Sindaco of Locarno, maker of Roskopf watches
• 1972, January - Chronos Holding acquires a major stake in Ogival
• 1972, April - The company relocates to Rue Centrale 60, Tour du Palais des Congrès
• 1972, July - The bankers Philippe de Weck, second vice-president Arnold Voegelin, and Max Häni are rotated off the board; René Gugger, Theodor Renfer, and Hans Strasser are no longer on the board of directors; new directors are appointed: second vice-president André Favre, André Brasey, Peter Haas, Heinz Hämmerli, Jean-François Krebs, and Eduard Rentsch
• 1973, May - Synchron acquires Aureole
• 1973, May - Administrator Henry Favre has died; Jack W. Heuer is appointed a new member of the board of directors
• 1973, July - Mireille Strasser is appointed a power of attorney
• 1974, November - Jean Hegetschweiler is moved from administrator to administrator-delegate; Roger Lévy now lives in Bienne
• 1975, May - First Vice-President Karl Obrecht, Jean-Louis Borel, Hans Kurth, and Michel Meyrat are no longer part of the Board of Directors; Erich Kocher is appointed director; André Favre is no longer second vice-president; Pierre Renggli is appointed first vice-president; André Brasey is appointed second vice-president
• 1975, October - Employees of Aureole are laid off and the firm is closed
• 1977, November 9 - The company reduces its share capital from 21,150,000 to 2,115,000 francs by reducing the nominal value of the 150,000 registered shares from 100 to 10 francs, and that of the 12,300 bearer shares from 500 to 50 francs
• 1978, January - Jean Hegetschweiler, who remains a member of the board of directors, is no longer a delegate and director; his signature and Mireille Strasser's are extinguished; Heinz Hämmerli (already administrator) gets signing authority, as does Richard Locher; the company moves to Faubourg du Lac 6, the offices of ASUAG
• 1978, June 23 - First Vice-President Pierre Renggli, Second Vice-President André Brasey, Charles Blum, François Du Pasquier, André Favre, Peter Haas, Jean Hegetschweiler, Jack W. Heuer, Numa Jeannin, Jean-François Krebs, Roger Lévy, and Paul Tuetey have resigned; the board of directors is now composed of President Gérard Bauer, First Vice-President René Retornaz, Second Vice-President Eduard Rentsch, Heinz Hämmerli, and Erich Kocher; Johann Affolter is appointed power of attorney
• 1979, January - Second Vice-President Eduard Rentsch is no longer a member of the Board of Directors; Pierre Pont is appointed second vice-president
• 1979, June 30 - Chronos Holding announces that it will no longer pay a dividend and will suspend repayment of certain loans
• 1983, December 19 - Following a special meeting of shareholders the decision is taken to dissolve Chronos Holding; Heinz Hämmerli is no longer part of the administration; his signature and Johann Affolter's power of attorney are extinguished; the liquidation will be carried out by Gérard Bauer, Carl Meyer, René Retornaz, Pierre Pont, and Erich Kocher
• 1986, December - The liquidation of Chronos Holding is completed and the company name is deleted