Bulgari Takes Full Control of Italian Jeweler Crova
January 03, 05
Italian luxury jeweler Bulgari has bought full control of high-end jewelry maker Crova, buying on Friday an additional 50 percent of the firm from the Crova family.
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Bulgari, the third-largest jeweler in the world, gave no details on the price or value for the deal, although in early 2003, Bulgari paid almost 8 million euros ($10.9 million) for its initial 50 percent stake in Crova, a jewelry firm established 160 years ago.
Jewelry sector analysts believe the acquisition will enable Bulgari to shift up to 50 percent of production in-house compared with 10 percent until now, thus speeding up the time-to-market for new products.
Bulgari Chief Financial Officer Ernesto Greco said late last year that buying Crova would help Bulgari increase its gross margin.
Members of the Crova family will remain on the firm's board of directors under the terms of the deal.
Bulgari said earlier this year it could buy other suppliers. In September the firm published strong financial results for the third quarter, when profits soared 35 percent to $43 million on sales of $441 million.
Indeed, such acquisitions could be one way for the jeweler to achieve its aim of growing by 10-12 percent in the coming three years as set out by Chief Executive Officer Francesco Trapani in September.