Bvlgari and Ferragamo Parfums part company

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Bvlgari Group's board of directors yesterday announced an agreement with the Ferragamo Group to terminate by mutual consent the joint venture relating to the production and distribution of Ferragamo and Ungaro fragrances.

In a statement Bvlgari announced it will sell back to the Ferragamo Group its 50% shareholding in the venture held by Bulgari Netherlands BV in Ferragamo Parfums SA and Ungaro Parfums SA. The agreement also includes the holding of Bulgari Parfums USA Inc in Ferragamo Parfums LLC and by Bulgari SpA in Ferragamo Italia SpA. The sale will be completed in the next weeks.

Based on the size that Bulgari Parfums has now reached, the company said that the synergies of production and distribution which had lead to the joint venture have now diminished. The freed resources are to be directly invested in the Bvlgari brand which is now the focus of the Group's strategy.

• Bvlgari Group has announced its consolidated results for 2000 which saw global sales rise 39% and 61% in Asia. See Financial news for more analysis.