(Rapaport…January 3, 2005) Bulgari SpA, the world's third-largest jeweler, has acquired all of Crova SpA, a jewelry producer in which it formerly held a 50% stake, the company said on December 31.
The purchase price was not disclosed though it was made clear that Crova family will remain on the board of the 158-year-old Italian company. Bulgari had acquired a half-stake in December 2002 for $10.8 million, (EUR8 million).
The 100% acquisition will allow the company to move up to 50% of production in-house, from a previous 10% and help it deliver goods quickly to the market. In 2003, Bulgari chief financial officer Ernesto Greco said that acquiring Crova would help the company boost its gross margin by 80 to 100 basis points in 2004.
Bulgari shares last traded on December 30 and fell 3 cents, or 0.3%, to 9.09 euros ($13.39) on the Milan stock exchange.
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