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The Laco name, an abbreviation of Lacher & Co., is steeped in tradition. Founded in 1925 by entrepreneurs Frieda Lacher and Ludwig Hummel, the company began building a name for itself by incorporating Swiss-made movements in self-manufactured watch cases. In 1936, Ludwig Hummel left the company he co-founded and Erich Lacher took his place. The company was subsequently renamed Erich Lacher Uhrenfabrik and it was under his auspice that the legendary and now highly-popular observation watches were first manufactured for the German air force. During the early 1940s the production of high-quality marine pocket watches was also begun.