Press Releases
Bulgari and the Leviev Group announce strategic partnership on diamond’s supply
Moscow, May 12, 2004 – Bulgari, the Contemporary Italian Jeweller and global luxury player, and the Leviev Group, the world’s largest producer of cut diamonds, announce today a joint venture agreement.
The agreement foresees the incorporation of a company based in Switzerland that will be participated 50 % by Bulgari International Corporation (BIC) NV, a fully owned subsidiary of Bulgari S.p.A., and 50% by LLD Diamonds Ltd., a fully owned subsidiary of Leviev Group, and has the objective of further developing the diamond’s jewelry business of the Bulgari Group. The Joint Venture will secure highly competitive supply of diamonds by the Leviev Group to Bulgari to create exclusive collections of jewels designed and produced by Bulgari.
This joint venture, which allows the Bulgari Group to further integrate its production process in the diamond jewellery segment, will enable the company to offer its final clientele the best collections, in terms of cost and quality, with unique stones – including the rarest blue, red, pink and green diamonds - distinguished by an unmistakable and timeless design.
The Leviev’s group of companies is the world’s largest producer of cut diamonds: it has cutting facilities in Israel, Russia and the CIS (Commonwealth of Independent States), the US and other locations, works its own mines of exceptional quality diamonds in Angola, Russia, Namibia and other locations, and all its production is certified as “Non – Conflict Diamonds”.
Francesco Trapani, Chief Executive Officer of the Bulgari Group commented: "I am very satisfied to have ventured with the Leviev Group that I believe to be the most professional, powerful and international company in the diamond industry. This agreement will have a strategic role in helping us consolidate our leadership position in the jewelry world market."
Lev Leviev, President and the controlling shareholder of the Leviev Group, commented: “I am very pleased to have established this strategic partnership with the Bulgari Group, one of the world’s most reputable jewelers and luxury brands. As one of the best global players on the luxury jewelry market, Bulgari is to us the best group to partner with in this promising joint-venture”.
Bulgari, the Contemporary Italian jeweller, is today one of the global players on the luxury market. In 2003 the company posted a turnover of Euro 760 million and relies on a distribution network of over 180 stores in the most exclusive shopping areas in the world. Bulgari has a product portfolio that ranges from jewels and watches to accessories, to fragrances. In 2001 Bvlgari created Bvlgari Hotels&Resorts, a joint venture with Luxury Group (that also manages the Ritz Carlton hotels) to open seven exclusive five star luxury hotels all over the world. The first hotel will be inaugurated in May 2004 in Milan’s most prestigious cultural and shopping area. The Group is controlled by the Bulgari family, holding 54,07 % of shares. The remaining 45,93% % is floating on the Milan stock exchange.
The Leviev Group, owned by Mr. Lev Leviev, is the world’s largest producer of cut diamonds, with an annual turnover exceeding U.S. Dollars 2.5 billion, in the diamond business alone. The Leviev Group is the only producer of cut diamonds in the world that is independent of any supplier of rough diamonds, and it is capable of supplying its own rough inventory in its entirety. The Leviev Group is the only diamond group in the world with control over the whole diamond “life cycle”, starting from the ownership of mines, through trade in rough diamond, cutting and polishing. The Leviev Group is active in various countries, including Israel, Russia, United States, Belgium, Angola, Namibia and South Africa, and is a leading group in the global diamond industry. Mr Lev Leviev controls additional investments and holding companies worldwide (some of which are public companies), with interests in real estate, energy, hotels, telecommunication and fashion.
For further information: Francesca Zanoni : +39-06.688 10 594; +39 348 250 8903.