Bollag-Guggenheim operates 24 directly managed stores in Switzerland and wholesales to a further 120 business partners with stand alone partnership stores, shop-in-stores and other outlets in Switzerland and Italy.

Chairman of Esprit Holdings Ltd Michael Ying said the company had taken control of distribution in the Swiss and Italian markets three and a half years ahead of schedule.

"This acquisition is in line with our international growth strategy and is an excellent opportunity to extend our directly managed distribution network in Europe," he said.

Esprit's Deputy Chairman and Group CEO Heinz Krogner said the company expects to double its business in Switzerland during the next four years.

"Their merchandising and retail systems are already linked to our network. We anticipate a smooth integration of these countries' businesses into our European operations," Mr Krogner explained.

Esprit's turnover in the year to 30 June 2003 increased by 34 per cent to nearly US$ 1.6 billion. This year marked the 35th anniversary of the establishment of the Esprit brand, and the tenth anniversary of the company's listing on the Stock Exchange of Hong Kong.

Commenting at the time on the company's results, Mr Krogner said Esprit had made significant strides towards building a stronger global company.

"We integrated the strategies, system and thinking of different regions in one global structure. Esprit is now a global brand "at home" in Europe, North America and Asia," he said.