Sector Group

Morellato S.p.A. completed the acquisition of a 100% stake in Sector Group S.p.A. from private equity fund Opera Management S.A. Sector Group, founded in 1973, is a leading player in the production and distribution of watches under the brands “Sector” and “Philip Watch”.

The Group also manufactures watches under licensed trademarks belonging to fashion companies such as Roberto Cavalli, Just Cavalli, Pirelli Pzero, Moschino and Valentino.

In 2005 Sector generated sales of Euro 64.6 million and it is expected to reach a turnover of Euro 78 million in 2006. Morellato, established in 1930, is a leading manufacturer of watch straps and it has an exclusive partnership with most prestigious watch manufacturers.

The Company also produces quality fashion jewels and leather accessories and generated 2005 sales of Euro 92.6 million with an Ebitda of Euro 24.2 million. Through this acquisition Morellato aims at obtaining important synergies and reaching strategic upsides.

At closing Sector Group was financed by Banca di Roma, Banca Antonveneta, Interbanca, SanPaolo IMI and MPS and the terms and conditions of financing were negotiated with Morellato as condition precedent for completing the deal.

Financial advisor to Morellato: Germano Palumbo (Partner and Head of M&A) and Niccolò Querci (Associate) of Fineurop Soditic S.p.A.. Legal advisor to Morellato: Lawyers Mario Ortu and Luigi Verga of Freshfield Bruckhaus Deringer. Legal consultant to Opera: Lawyers Giorgio Meo and Nicola Marotta of Studio Meo (Rome).