Essilor completes acquisition of Transitions from PPG

PPG Industries Inc. announced Tuesday the completion of a previously-announced sale of Transitions Optical to Essilor International.

As detailed in the company’s press release, PPG has divested its 51% interest in Transitions Optical to Essilor, which previously held a 49% interest in the joint venture.

Essilor has also acquired PPG's wholly-owned sun lens business, according to the release.

PPG received $1.73 billion pre-tax at closing, approximately $1.5 billion after taxes, subject to adjustments and transaction costs, the release said.

In previous releases, officials with PPG and Transitions Optical discussed the future for both ventures.

“We intend to redeploy the proceeds from the transaction in a timely manner on core business acquisitions and share repurchases," Charles E. Bunch, PPG chairman and CEO, said in a company press release. “The earnings benefits from this cash deployment are expected to more than offset the reduced earnings from the Transitions Optical divestment. Additionally, we suspended share repurchase activity at the outset of the second quarter due to ongoing negotiations and are now reinitiating repurchases targeting a range of $500 million to $750 million for the year.”

“We will continue to focus on strengthening our mutually beneficial relationships with all of our valued customers across the optical industry; leveraging the talents of our passionate, talented people; and providing the highest quality photochromic lenses to consumers,” Dave Cole, Transitions Optical president, said in a company release.