#1

01-26-2013, 07:05 PM

meijin Managing Director/Admin

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Real Name: Michael

Big changes at SWI I guess...

Was just made aware of this...maybe I missed the original announcement?

Clearlake Capital Group Acquires SWI

Will Accelerate Growth of eCommerce Leader of Watches, Accessories and Apparel

Santa Monica, CA and Hollywood, FL – December 18, 2012 – Clearlake Capital Group, L.P.

(“Clearlake”) and Swiss Watch International, Inc. (“The SWI Group”, “SWI”, or the

“Company”) today announced that Clearlake has acquired SWI, a leading online retailer of

watches, accessories, and apparel. Terms of the transaction were not disclosed.

SWI pioneered the sale and distribution of watches, accessories and apparel online through

the Company’s portfolio of category-leading flagship websites, which include

WorldofWatches.com, eWatches.com, TheWatchery.com, and SmartBargains.com. In

addition, SWI is a leading supplier to the largest online retailers, marketplaces, streaming

video/social commerce channels, private sales sites, daily deal sites, and other channels,

making SWI a highly scalable eCommerce and distribution platform.

“Swiss Watch International is the clear market leader with an exceptional executive team

that has an impressive track record of merchandising, distribution and online retailing

capabilities. We are excited to sponsor SWI as a platform and deploy additional capital to

consolidate the space. We plan to work closely with management to grow the business and

contribute Clearlake’s operational capabilities to enhance value at SWI,” said Behdad Eghbali,

founding partner at Clearlake.

Along with Mr. Eghbali and Arta Tabaee of Clearlake, Clearlake’s executive operating

partners, Neel Grover and Greg Giraudi, have joined the SWI board of directors. Messrs.

Grover and Giraudi will serve as value-added operating partners to the Company, assisting

management in implementing key operational and marketing initiatives. Mr. Grover and Mr.

Giraudi bring a tremendous amount of eCommerce experience to SWI and were most

recently chief executive officer and chief operating officer, respectively, of Rakuten Buy.com.

“We are very pleased to partner with SWI, which is well-positioned to grow market share and

capitalize on continued global eCommerce penetration and the expansion of the affordable

luxury market,” added Mr. Grover. “SWI is a strong platform, and we believe its growth and

profitability can be enhanced by implementing key commercial, operational, and marketing

initiatives.”

“On behalf of the Ben-Shmuel family, we would like to express our genuine excitement to

partner with Clearlake Capital and its operating partners. We are pleased to have chosen

like-minded partners in Clearlake, which has demonstrated excellent results with its portfolio

companies, and we have made a significant co-investment in the form of roll-over equity

alongside Clearlake. With Clearlake’s sponsorship and value-added initiatives, we plan to

continue to build on SWI’s history of growth and success,” said Izac, Lior and Shlomi Ben-

Shmuel, co-founders of SWI.

Debt financing was provided by GSO Capital Partners and PNC Bank. Blackstone Advisory

Partners served as financial advisors to Swiss Watch International, and Moelis & Company

served as financial advisors to Clearlake.

About Swiss Watch International

Swiss Watch International, headquartered in Hollywood, Florida, is a leading fully integrated

online retailer and multi-channel distributor of watches, accessories and apparel. For over

thirty years, SWI has been a world leader in the watch industry. The Company has an ever

growing portfolio of proprietary watch brands, including Swiss Legend, Lucien Piccard, Red

Line and a_Line timepieces, and is also the official distributor for recognizable brands such as

Invicta, Elini, Glam Rock, and Kenneth Jay Lane. For more information, please visit

www.theswigroup.com.

About Clearlake Capital Group

Clearlake Capital Group, L.P. is a private investment firm focused on special situations and

private equity investments such as corporate divestitures, recapitalizations, buyouts,

reorganizations, turnarounds and other equity investments. Clearlake seeks to partner with

world-class management teams by providing patient, long-term capital and operational

expertise to invest in dynamic businesses. Clearlake currently manages approximately $1.4

billion of equity capital, and Clearlake’s founding principals have led over 50 investments

totaling more than $2.7 billion of capital in sectors including business services,

communication, consumer products/retail, defense & public safety, energy/power,

healthcare, industrials, media, and technology. For more information, please visit

www.clearlakecapital.com.

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Argument is meant to reveal the truth, not to create it. ~ Edward de Bono

Invicta...in hoc nomen vinces!

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02:12 PM

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#2

01-26-2013, 07:09 PM

chase16 Master WatchGeek

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wow!

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#3

01-26-2013, 07:28 PM

plasticsexpert Super Geek

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Double wow! I wonder how this will affect all the warranty and the policy on the products

sold by SWI? Also, I wonder if this is why Lior hasn't produced any SWI timepieces?

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#4

01-26-2013, 07:32 PM

JavaQueen Master WatchGeek

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Thanks for bringing this to our attention. I had no idea, but it answers a lot of questions that

I had.

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#5

01-26-2013, 07:38 PM

jnc True WatchGeek

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Thanks for the up dated info...

jnc

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#6

01-26-2013, 07:50 PM

boaters Master WatchGeek

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Wow is right ... Thanks For the Update Mike

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#7

01-26-2013, 07:56 PM

multiwatchman Master WatchGeek

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Thanks for the update. I hope this is a good thing for everyone.

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#8

01-26-2013, 08:02 PM

LordRobb Super Geek

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Interesting. I cant wait to see what the future SWI Product line will look like.

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#9

01-26-2013, 08:04 PM

Jim3 Super Geek

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Thanks Mike.

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#10

01-26-2013, 08:16 PM

alwaystenpastten Master WatchGeek

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Michael, thank you for the info. Gary, thank you for the imagery. Lior has been bought out

for a tidy sum, and will be in the market for a new mansion. Maybe, MAYBE, the new

company will have the clout to strike a deal with the secret manufacturers of the SWI LE

line. We can all hope and dream.

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#11

01-26-2013, 08:25 PM

STILL TICKIN True WatchGeek

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Quote:

Originally Posted by alwaystenpastten

Michael, thank you for the info. Gary, thank you for the imagery. Lior has been bought out

for a tidy sum, and will be in the market for a new mansion. Maybe, MAYBE, the new

company will have the clout to strike a deal with the secret manufacturers of the SWI LE

line. We can all hope and dream.

Actually is now partnering with Clearlake which will now be a joint venture with

Lior and his brothers.

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#12

01-26-2013, 08:39 PM

Lensherben Super Geek

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Very interesting. Thanks for the info.

Sheri

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#13

01-26-2013, 08:45 PM

curiousgeorge True WatchGeek

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Quote:

Originally Posted by STILL TICKIN

Actually is now partnering with Clearlake which will now be a joint venture with

Lior and his brothers.

Yep, I think people are misreading Mike's post and since the new controlling partners are not

in the watch industry, I expect Lior and his family will still be the visionaries of the company.

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#14

01-26-2013, 08:46 PM

Nismo Moderator

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^^ Yes it would seem some are.

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#15

01-26-2013, 08:47 PM

reliefcp True WatchGeek

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Big news and will be interesting to see how it shakes out.

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#16

01-26-2013, 09:19 PM

NANDO Senior Member

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Thanks for the insight.

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#17

01-26-2013, 09:28 PM

Boboy Super Geek

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Is Technomarine part of SWI also?

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#18

01-26-2013, 09:31 PM

WATCHJAC True WatchGeek

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Quote:

Originally Posted by reliefcp

Big news and will be interesting to see how it shakes out.

Yes indeed!!! __________________

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#19

01-26-2013, 09:32 PM

JavaQueen Master WatchGeek

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A joint venture is not a buyout or acquisition.

from Technomarine's website:

TechnoMarine SA manufactures and markets luxury watches. The company was founded in

1997 and is based in Geneva, Switzerland

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#20

01-26-2013, 10:55 PM

gator2012 Senior Member

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Very interesting...we will see how it shakes out in the future.

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#21

01-27-2013, 02:09 AM

mblitz Senior Member

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I guess we will have to see how this plays out. Hope SWI does well after this.

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#22

01-27-2013, 03:04 AM

kelek Veteran Geek

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WHOOPS

These deals are always expensive, and there is only one way to get there money

back. Higher prices and shipping charges etc etc...

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#23

01-27-2013, 04:01 AM

Arnie11 True WatchGeek

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Shrewd businessman the SWI brothers. Very, very shrewd. I have no doubt that

this will serve to grow SWI into a huge player in their industry, beyond what they

already are. Nice move Lior !!!

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#24

01-27-2013, 05:00 AM

ddavidsonmd Master WatchGeek

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Interesting

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#25

01-27-2013, 07:32 AM

ACE True WatchGeek

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Thanks Michael. Seems like a plan

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.. ..* * * * * * *. ** .* 01-27-2013, 08:40 AM

BigBen54 Veteran Geek

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.. ...Here's hoping it's a win/win, and that the customer is one of the winners.

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#27

01-27-2013, 09:08 AM

the watcher Super Geek

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Hmmmm, infusion of capital, maybe to expand WOW TV to additional hours and compete

with Shopnbc during late night hours?

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#28

01-27-2013, 09:28 AM

nferr Super Geek

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Quote:

Originally Posted by JavaQueen

A joint venture is not a buyout or acquisition.

from Technomarine's website:

TechnoMarine SA manufactures and markets luxury watches. The company was founded in

1997 and is based in Geneva, Switzerland

Reading the public announcement it's not a joint venture. Clearlake ACQUIRED SWI. Bought

it out. They probably will keep the current management in place, but they own and control it.

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#29

01-27-2013, 09:42 AM

JavaQueen Master WatchGeek

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Never mind. I had gone back and re-read it later.

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#30

01-27-2013, 09:43 AM

Russell3 Super Geek

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The way I read it, it looks like Lior got bought out, however his family will continue to

run the company and use Clearlake's money to build the business even bigger.

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#31

01-27-2013, 09:47 AM

JavaQueen Master WatchGeek

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It makes you wonder though about the impact of this "deal." SWI owned a lot of the watch

sites.

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#32

01-27-2013, 09:52 AM

bioya58 Super Geek

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Prices are going to go up........

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#33

01-27-2013, 09:59 AM

boaters Master WatchGeek

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Quote:

Originally Posted by bioya58

Prices are going to go up........

That My Friends You Can Count On..

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#34

01-27-2013, 10:48 AM

paceheart52 Veteran Geek

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Thanks for the update...will see what happens.

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#35

01-27-2013, 11:00 AM

hokk54 True WatchGeek

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Quote:

Originally Posted by nferr

Reading the public announcement it's not a joint venture. Clearlake ACQUIRED SWI.

Bought it out. They probably will keep the current management in place, but they own and

control it.

AQUISITION BY PRIVATE EQUITY or JOINT VENTURE ?

TIME will tell

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#36

01-27-2013, 11:17 AM

venom pete Senior Geek

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Yeah, I'd call that a big change alright, lets see how it plays out in production and sales.

Thanks for the info Michael!!!

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#37

01-27-2013, 12:29 PM

naylorhw Veteran Geek

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To me it means keeoing a closer eye on SWI activities for evidence of this significant event.

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#38

01-27-2013, 06:15 PM

TimLovesWatches True WatchGeek

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Interesting stuff Mike.

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#39

01-27-2013, 06:50 PM

alwayswatchin12 Member Member Geek

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Wow, I.... Did not know that, thanks for the post.

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#40

01-27-2013, 08:02 PM

CohibaJoe Senior Member

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Quote:

Originally Posted by Arnie11

Shrewd businessman the SWI brothers. Very, very shrewd. I have no doubt that

this will serve to grow SWI into a huge player in their industry, beyond what they

already are. Nice move Lior !!!

Yep....Let's see what Happens to the Watch Shows.

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#41

Yesterday, 08:22 PM

HondaLover Master WatchGeek

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Sad news. Things like this rarely improve product or customer service.

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