Press Releases
The vertical integration process of the Bulgari Group in watchmaking and accessories continues - The first Bulgari store fully dedicated to accessories will open in Japan at the end of November
Rome, October 17th 2005 – The vertical integration process of the Bulgari Group continues and strengthens thanks to the acquisitions, signed in the past few days, of a 51% stake of the Swiss firm Prestige d’Or S.A., leader in the production of steel and precious metals watch straps for high-end watches, and of 100% of the Tuscan individual firm Pacini, now named Bulgari Accessori S.r.L., producing leather, reptile and custom-made fabric handbags.
Prestige d’Or S.A., founded in Switzerland in 1993 and based in Saignelégier (in the Canton of Jura) since 1999, boasts a long relationship with the Group, supplying watch straps for high-end Bulgari watch models like Bulgari-Bulgari, Ergon and the new line Assioma presented this year at the Basel Fair and now available in stores. Prestige d’Or currently has 64 employees and in 2004 registered a turnover of about 5 million Euro. Jean Claude Probst, founder of Prestige d’Or and currently Production Manager of the company, holds the 49% of the shares of Prestige d’Or and will continue to head its manufacturing operations, reporting to the Watch Business Unit of the Bulgari Group.
Pacini’s firm, founded in 1969 by Mario Pacini, is based in Bagno a Ripoli (Florence) in the heart of the Tuscan leather working district. The company is specialised in a wide range of activities, from the realisation of paper patterns and prototypes to materials supply, cutting, stripping, assembling and mounting for leather, precious hides and custom-made fabric handbags. The firm – now named Bulgari Accessori S.r.L. – currently has about 15 employees with the aim to increase the personnel to 50 units in the next months in order to meet the new and increased production needs.
Through these acquisitions the Bulgari Group testifies once again its commitment for an upstream vertical integration strategy aiming to optimise the production processes. This strategy was successfully started some time ago with the acquisition of 100% of Crova in two phases (December 2003 and December 2004) in the jewellery sector and of a 50% stake of Cadrans Design (April 2005) in the watchmaking sector.
The recent acquisition of Bulgari Accessori S.r.L. will enable the Group to go on with the development of the accessories business especially in light of the outstanding sales performance posted by this segment (+35.0% in the first semester 2005). A fundamental step for this project, in fact, will be the opening of the first Bulgari store fully dedicated to accessories: the new 120 square metres store will open at the end of November in the department store Shinsaibashi Sogo of Osaka (Japan) and will be adjoining the 120 square metres jewellery and watches store opened by the brand in September this year.
Bulgari is one of the global players on the luxury market. In 2004 the Group posted a turnover of 832 million Euro, a net profit of 109 million Euro (IAS/IFRS restated). With a market capitalization of about 2,718 million Euro (as of 10.14.2005), Bulgari relies on a distribution network of 194 stores in the most exclusive shopping areas in the world and on selected distributors. Bulgari has a product portfolio that ranges from jewels and watches to accessories and perfumes. The Group is controlled by the Bulgari family, holding about 52.0% of the share capital. The remaining 48.0% is floating on the Milan Stock Exchange.
For further information
| Media relations | Analysts / investors relations |
| Paolo Piantella | Renata Casaro |
| Corporate Financial Press Office Director | Investor Relations Director |
| tel. +39 06 68 810 593 | tel. +39 06 68 810 467 |
| e-mail paolo.piantella@bulgari.com | e-mail renata.casaro@bulgari.com |
| www.bulgari.com | http://ir.bulgari.com |