Baume & Mercier was founded by the Baume family in the small village of Les Bois. The family was already active in watch making for many years. They originally concentrated on making pocket watches, but in 1844 things changed when Joseph Baume went to England and created business relationships that helped open distant markets in Australia and New Zealand. Currently, their main markets lie in European counties such as Italy, Spain, and France. The company is keen about who sells their watches and, as a result, has 220 hand-picked retailers around the world. From this strategy the company has experienced a great deal of success within the watch making world.
To highlight their success, in 1893 Baume & Mercier timepieces won a timing competition at the Kew-Tedding Observatory with a score of 91.9 out of 100. The market that Baume had developed overseas and the success at competitions helped give the family confidence that they could develop and sell their own luxury watches worldwide with a reputation to back it up. In 1912 William Baume met a jeweler named Paul Mercier at a Geneva watch and jewelry shop. This meeting eventually resulted in the two signing an agreement in November 1918 that established Baume & Mercier as a company. This agreement proved to be a brilliant collaboration for both parties. In 1921 the company was rewarded the coveted Poincon de Geneva, which recognized them for their flawless high-quality timepieces. In 1937 the two figureheads, William Baume and Paul Mercier, retired and left the company in the hands of their apprentices, jeweler Constantine de Gorski and master jewel-setter Robert Peron.
Following World War II, Baume & Mercier concentrated on conventional men's watches, sports chronographs, and lady's watches. The company was bought shortly after by the Piaget family and subsequently developed their calendar watches with a mini rotor. In 1970 the company began to migrate towards quartz movements, and by the end of 1983 Baume & Mercer ceased production of mechanical watches. In 1988 Piaget sold 60% of the company to Piaget Holding S.A. This portion was then sold to Cartier Monde S.A. in Paris, and by 1993 the Cartier group became sole owners of Baume & Mercier.