Kering, the luxury goods group behind many brands, including Gucci and Saint Laurent, has agreed to acquire 100% of the shares of Swiss watchmaker Ulysse Nardin. The transaction is expected to close within fiscal year 2014.

With this acquisition, Kering aims to strengthen its Luxury: Watches & Jewelry division and structurally develop its organization. Kering Chairman and CEO François-Henri Pinault commented, "Ulysse Nardin is a rare, independent brand with a rich tradition and high growth potential. We will support the brand as it pursues international expansion while preserving its roots and identity."

For Ulysse Nardin, this acquisition will strengthen its presence in the Asia-Pacific region, and its technical and industry expertise is expected to create synergies with Kering's existing businesses. Chai Schnyder, Chairman of the Board of Directors of Ulysse Nardin, said, "Kering is the perfect partner for us, as it allows us to continue to expand internationally and innovate while preserving our identity and passing on our knowledge and expertise to the future."

Founded in 1846 by Swiss watchmaker Ulysse Nardin, the brand has been producing mechanical watches for 168 years. Nardin marine chronometers are said to be the most accurate in existence and are coveted items for watch collectors. The brand has deep ties to Japan, having been adopted by the navies of both countries during the Russo-Japanese War and serving as a purveyor to Emperor Meiji. Since its relaunch by Rolf W. Schnyder in 1983, the brand has continued to operate healthily, boasting high business profit margins.