The Benetton Group Annual Report 1996

OTHER INFORMATION
5. Purchase of subsidiary companies and disposal of associated companies
1994
Benetton International N.V. acquired for £.11,000,000 (approximately Lire 28,000 million) full control over
Benetton Engineering Ltd. from a subsidiary of Edizione Holding S.p.A.. The acquired company owns a
50% stake in TWR Group Ltd., which has been treated as a subsidiary since the Benetton Group controls
the majority of voting rights at ordinary meetings. TWR Group Ltd. principally designs and develops
prototype racing cars.
Among Group companies in Italy, the interest in Azimut S.p.A., a company involved in the shirt and
blouse production and distribution activities, was increased from 50% to 75%. The same reorganization
involved the disposal to third parties of the Group’s interests (50% in both cases) in Altana Uno S.p.A.
and Columbia S.p.A., non-operating companies whose shirt-sector activities had previously been
transferred to Azimut S.p.A..
Texcontrol S.p.A. added to its manufacturing capacity by acquiring 100% of F.T. Srl, based in Follina
(Treviso), a company specializing in the dyeing of wool fabrics. Two newly-formed wholly-owned
subsidiaries also commenced operations under business rental agreements: Finitex S.p.A. specializes in
the dyeing and printing of woven fabrics, and Tessuti di Pordenone S.p.A. is active in weaving.
Galli Filati S.p.A., which manufactures and distributes carded woolen yarns, expanded by acquiring a
plant in Caserta that specializes in the processing of this type of yarn.
The Group increased from 50% to 90% its investment in Benetton Group Japan K.K..
1995
In pursuit of increasing efficiency among the manufacturing subsidiaries of the Group, Manifatture
Stefani S.p.A. acquired from Texcontrol S.p.A. 100% of Finitex S.p.A. and 100% of Tessuti di Pordenone
S.p.A..
Maglificio Fontane S.p.A., now 75% owned by Benetton Group, acquired a 81% controlling interest in
Maglifici Re.Mo. S.p.A. and took over this company’s activities in the processing of woolen knitwear.
Maglifici Re.Mo. S.p.A. has since ceased operating.
Benetton Group increased its 75% holding in Azimut S.p.A. to 100%, via the purchase from third parties of
the remaining shares, and started direct production and distribution of shirts and blouses.
Galli Filati S.p.A., completed the acquisition of 100% of the capital stock of Filma S.p.A., based in
Valdagno (Vicenza), thereby adding the manufacture and processing of worsted woolen yarns to its
range of activities.
In the context of the program to strengthen and diversify the wool sector production cycle, Galli
Filati S.p.A. also purchased a 50%-interest in the capital stock of Spiller S.p.A., based in Schio (Vicenza),
which is active in raw materials and in wool and mixed-fiber fabrics.
The Group's international development plans have also targeted new geographic areas, particularly
Tunisia, where Benetton Tunisia S.a.r.l., a wholly-owned subsidiary, has begun the production of an
initially limited range of products, and Oporto (Portugal), where Benetton Lda., another wholly-owned
subsidiary, has been formed for manufacturing and distribution purposes.
An additional 50% of the capital stock of United Colors of Benetton do Brasil S.A. was acquired in
December 1995 with a view to strengthen management control of the Group's production and
marketing structure in Brazil.