The Italian company B.A.G., which already owns NeroGiardini, NG NeroGiardini and NeroGiardini Junior, has acquired an Italian apparel company, Maglificio Santa Lucia. The group expects to accelerate its diversification in clothing, which could generate annual sales of €10-20 million this year and €100 million in five years' time. B.A.G. has reported a sales increase of 8.5 percent to €200 million for 2009, slightly less than the 10-15 percent initially forecast. Net profits fell to €8 million from €11 million due to an increase in advertising expenditures.