This week, luxury brand Chanel announced it purchased a 25% stake in independent watchmaker MB&F.

Known for eccentric, playful watch designs that can reach as high as hundreds of thousands per timepiece — often referred to as wrist machines — MB&F reportedly generated top-line revenue of $53 million in 2023.

MB&F founder, and industry veteran (from Jaeger-LeCoultre and Harry Winston), will retain 60% ownership of the company (down from 80%), and his partner Serge Kriknoff, head of R&D and production (will retain a 15% share).

Chanel is privately owned by Alain and Gérard Wertheimer and is known for its mainstream ceramic J12 watch collection. Less known, is that Chanel has a history of buying minority stakes in watchmaking brands. Chanel purchased a minority stake in Bell & Ross in 1998, Romain Gauthier in 2011, FP Journe in 2018 (20%), and now MB&F in 2024 (25%).

Chanel started its Swiss watchmaking division in 1993 after acquiring the G&F Châtelain manufacture in La Chaux-de-Fonds in Switzerland, with which it had worked since 1987. Chanel currently works with Renaud et Papi and Romain Gauthier for its higher-end watch production, though the investment in MB&F does not appear to be a logistical play.

“In addition to allowing us to pursue our independent path, free of any pressure on growth, the investment by Chanel will strengthen our operations by providing access when needed to their wider ecosystem and network of specialized suppliers,” Buesser said.

Büsser and Kniknoff will continue to run the company, with the existing team staying in place.