By Denis Langlois
ESSILOR , LUXOTTICA TO MERGE
The world ’ s largest lens maker and the biggest manufacturer of eyeglasses in the world have agreed to a merger .
France ’ s Essilor , which owns lens brands like Transitions , Varilux and Crizal , and Italy ’ s Luxottica , which has an extensive brand portfolio that includes Ray-Ban , Oakley and multiple designer labels as well as a retail network that includes LensCrafters and Pearle Vision , announced the deal in a joint news release Monday .
Together , the two companies would have combined net revenues of more than 15 billion euros ( nearly $ 21 billion CDN ), along with 140,000 employees and sales in more than 150 countries .
“ With this agreement , my dream to create a major global player in the eyewear industry , fully integrated and excellent in all its parts , comes finally true ,” Leonardo Del Vecchio , chairman of Delfin , which owns the biggest stake in Luxottica , and executive chairman of Luxottica Group , said in a statement .
“ It was some time now that we knew that this was the right solution but only today are there the right conditions to make it possible . The marriage between two key companies in their sectors will bring great benefits to the market , for employees and mainly for all our consumers . Finally , after 50 years , two products which are naturally complementary , namely frames and lenses , will be designed , manufactured and distributed under the same roof .”
Hubert Sagnières , chairman and CEO of Essilor , said the merger will allow the companies to better respond to consumers ’ needs in both vision correction and vision protection .
“ With extraordinary success , Luxottica has built prestigious brands , backed by an industry state-of-the-art supply chain and distribution network . Essilor brings 168 years of innovation and industrial excellence in the design , manufacturing and distribution of ophthalmic and sun lenses . By joining forces today , these two international players can now accelerate their global expansion to the benefit of customers , employees and shareholders as well as the industry as a whole ,” Sagnières said .
The two companies say the transaction will allow the combined group to better seize growth opportunities resulting from strong demand in the eyewear market , driven by the increasing need for corrective and protective eyewear and the appetite for strong brands .
“ The combination would create a key player , operating across all segments of the eyewear industry . The new entity would leverage state-of-the-art production capabilities and widespread distribution networks to better serve clients and deliver value to all stakeholders ,” the news release says .
Based on a preliminary analysis , the combined group is expected to progressively generate revenue and cost synergies ranging from 400 million to 600 million euros ($ 558 to $ 838 million CDN ) in the medium term and accelerating over the long term . The companies say the merger will allow them to be “ in a stronger position to address the vision needs of the 7.2 billion people in the world out of which 2.5 billion people still suffer from uncorrected vision problems .”
24 EYE FOCUS | February 2017