This article is more than 5 years old. Information may no longer be current.
Essilor, Luxottica to merge
Essilor and Delfin have signed an agreement designed to create an integrated player dedicated to visual health and superior consumer experience by combining Essilor and Luxottica Group, according to a press release from Essilor.
Closing is expected in the second half of 2017, subject to satisfactions of all conditions, according to the release.
The new group has a combined revenue of more than $15.9 billion, more than 140,000 employees and sales in 150+ countries, the release said, and could provide a comprehensive offering through its brand portfolios, global distribution capabilities and complementary expertise in ophthalmic lenses, prescription frames and sunglasses.
Delfin irrevocably commits to contribute its shares in Luxottica to Essilor based on an exchange ratio of 0.461 Essilor share for 1 Luxottica share, as noted in the release.
Based on a preliminary analysis from Essilor, the new group is expected to progressively generate revenue and cost synergies ranging from $424 million to $636 million in the medium term and accelerating over the long term.
Luxottica’s executive chairman, Leonardo Del Vecchio, would serve as executive chairman and CEO of EssilorLuxottica. Essilor chairman and CEO, Hubert Sagnières, would serve as executive vice chairman and deputy CEO of EssilorLuxottica, with equal powers as the chairman and CEO.
Del Vecchio and Sagnières would also keep their positions of executive chairman of Luxottica and chairman and CEO of Essilor International, respectively.
The EssilorLuxottica board of directors would consist of 16 members: eight nominated by Essilor and eight nominated by Delfin.
Luxottica’s global wholesale distribution network covers more than 150 countries and an extensive retail network of approximately 7,400 stores, with LensCrafters and Pearle Vision in North America, OPSM and LensCrafters in Asia-Pacific, GMO in Latin America and Sunglass Hut worldwide, according to the company’s website.
Essilor said its mission is to improve lives by improving sight and allocates more than $212 million to research and innovation each year. The company employs 61,000 people worldwide, markets its products in more than 100 countries and has 32 plants, 490 prescription labs and edging facilities and five research and development centers around the world.