Lux to buy another chain...................

**Chris Ryser** · 03-02-2007, 03:43 PM

A press release from November 6/06 does NOT mention this transaction also of November 6, the same date, The transaction is supposed to be completed early this years............................

Luxottica to buy D.O.C. Optics chain

Luxottica Group SpA, the operator of LensCrafters and other eyeglass chains, has entered a deal to acquire the 100-store retail business of D.O.C. Optics for $90 million.

The deal will expand Luxottica to more than 4,700 stores in North America, where it operates LensCrafters, Pearle Vision, Sunglass Hut and others. D.O.C operates stores in Ohio, Michigan, Missouri, Wisconsin, Illinois and Florida.

Check story at: http://www.bizjournals.com/milwaukee...tml?from_rss=1

Press release page of Luxottica

http://luxottica.com/english/rassegn..._investor.html

**Fezz** · 03-02-2007, 03:47 PM

We spoke about this in November 2006!

LUXOTTICA: DOING BETTER IN THE US, BUYS D.O.C OPTICS
(AGI) - Milan, Nov. 2 - Luxottica is strengthening its presence in North America with the purchase of D.O.C Optics, an optics chain with 100 stores in the Midwest of the United States, with most of its retail outlets concentrated in the Detroit area and forecasted revenue in 2006 of 100 million dollars. Luxottica will pay D.O.C Optics, not including predicted fiscal benefits, approximately 90 million dollars. The transaction, according to a note, should be finalized within the first quarter of next year. According to Leonardo Del Vecchio, president of Luxottica Group, "the results of retail business in North America, up until the current moment, make for a forecasted year end showing strong growth. However, we believe that there will be other opportunities for this business to continue to grow considerably. This is why the purchase of D.O.C Optics represents an important step in our strategy aimed at maximizing such opportunities for development, in particular for our chains LensCrafters and Pearle Vision". (AGI) -

**Jacqui** · 03-02-2007, 04:59 PM

This was on the LK board about it recently.

http://forums.laramyk.com/viewtopic.php?t=798

**cocoisland58** · 03-03-2007, 06:51 AM

In the Detroit area we heard about it before it hit the media. There was much rejoicing in our office. DOC is now airing tv commercials thanking their loyal customers without actually saying that they are kaput. They are also going out with a bang advertising a true bogo. Bye bye O Arrogant One.

**Johns** · 03-03-2007, 07:13 AM

Originally Posted by cocoisland58

There was much rejoicing in our office.

I don't think you'll find too many fans of Mr Golden in this area either, but be careful what you wish for...

We'll never have such a "non" competitor in our market again. Profits came easy when we were up against the pompous one.

**cocoisland58** · 03-03-2007, 10:36 AM

But they very much were competition in this area since they started here many years ago and are still known by their true name Detroit Optometric Center. We did get a lot of their unhappy customers though, probably still will.

**LKahn** · 03-03-2007, 07:52 PM

Apparently there must have been a few satisfied customers and the principals of the business must have done something right. Generally, most do not get paid $110 million when all customers are unsatisfied and everything is wrong. Just an observation.

**victor** · 03-03-2007, 08:20 PM

Is it $100mil. for 90 stores? That is less than $1mil per store. Dosen't sound that great to me. Maybe I am misunderstanding the situation.

**cocoisland58** · 03-03-2007, 08:51 PM

Originally Posted by LKahn

Apparently there must have been a few satisfied customers and the principals of the business must have done something right. Generally, most do not get paid $110 million when all customers are unsatisfied and everything is wrong. Just an observation.

Of course they had many satisfied clients, we didn't inherit those. The complaints were always about the sales people being extremely pushy and/or rude. Well their paycheck did depend heavily on commission and they were expected to perform no matter what. I have personal afidavits.

**cocoisland58** · 03-03-2007, 08:52 PM

Originally Posted by victor

Is it $100mil. for 90 stores? That is less than $1mil per store. Dosen't sound that great to me. Maybe I am misunderstanding the situation.

Not that great. And the franchisees are out in the cold baby.

**Fezz** · 03-03-2007, 10:27 PM

Originally Posted by victor

Is it $100mil. for 90 stores? That is less than $1mil per store. Dosen't sound that great to me. Maybe I am misunderstanding the situation.

That is a lot of money. Imagine being the Golden family and someone offers you that amount of scratch. Would you say no and try to piece meal sell the stores at one ore two at a time "maybe"? Hell no! When you say less than 1 million per store, that is still alot. Have you price shopped an optical practice or store? I have. Believe me, a store would have to have some real high multi-million dollar sales and a boatload of patient records and inventory to be worth 1 million bucks. I think the Goldens made out just fine.

**MarcE** · 03-03-2007, 10:49 PM

Originally Posted by Fezz

That is a lot of money. Imagine being the Golden family and someone offers you that amount of scratch. Would you say no and try to piece meal sell the stores at one ore two at a time "maybe"? Hell no! When you say less than 1 million per store, that is still alot. Have you price shopped an optical practice or store? I have. Believe me, a store would have to have some real high multi-million dollar sales and a boatload of patient records and inventory to be worth 1 million bucks. I think the Goldens made out just fine.

that's true. I could buy every optical in nine counties for $1mil. (sparcely populated counties here)

**optirep** · 03-04-2007, 06:36 AM

Math ?

Less than 1 million a store?

90 stores 100 mil =1,111,111 per store right!

That would be over 1 million per store. Am I missing somthing here?

**m0002a** · 03-04-2007, 11:52 AM

The value of D.O.C Optics might have depended on any real estate they owned, or any long-term leasehold agreements they have.

**cocoisland58** · 03-04-2007, 12:41 PM

Originally Posted by m0002a

The value of D.O.C Optics might have depended on any real estate they owned, or any long-term leasehold agreements they have.

Yep. DOC also owns SEE eyewear which is a private label boutique kind of store and I am not sure how many locations. Lux apparently had no interest in purchasing it.

**lilchiken** · 03-04-2007, 02:06 PM

Yeah real old. And they want to keep the SEE boutiques, I guess they expect to make some moola with them as they are concept stores.

**Chris Ryser** · 03-04-2007, 02:31 PM

Yeah it's old news..................but it has not happened yet and we are in the 1st quarter of 2007.

(D.O.C. is projected to post 2006 sales of more than $100 million. The deal is expected to be complete in the first quarter of 2007 )

**Fezz** · 03-04-2007, 02:57 PM

Thanks for the update Chris.

**Jacqui** · 03-04-2007, 05:00 PM

Done deal. I have word from one of their suppliers, also see post #3

**impact500** · 03-04-2007, 05:56 PM

Chris Ryser: <<but it has not happened yet>>

Incorrect.

Jacqui: <<Done deal>>

Correct.

**optirep** · 03-04-2007, 07:27 PM

March 2, 2007
Luxottica Group of Milan, Italy, said it has closed on the $110-million purchase of D.O.C Optics Corp., the Southfield-based retail optical chain that operates 100 stores in Michigan, Wisconsin, Ohio, Illinois, Missouri and Florida.

"This is a bittersweet time for our family as D.O.C has been in our lives since it was started by my father, Dr. Donald L. Golden, in 1946," said Richard S. Golden, D.O.C's president and CEO.

"We are pleased that the vast majority of our employees will continue employment, which was a key objective for us." Luxottica makes Ray-Bans and other upscale eyewear and owns LensCrafters, Pearle Vision and Sunglass Hut.

**Fezz** · 03-04-2007, 07:32 PM

110 Million dollars is some serious scratch!

Bravo for the Goldens, love 'em, hate 'em, envy 'em...one heck of a deal!!!

**hmsmark** · 03-05-2007, 01:08 AM

I actually lament this deal. I worked as an optician for years in Detroit before moving to Chicago. I never worked for DOC, but I liked the fact that they were around. Its not good for Luxottica to own every freaking chain! Just from an Optician or even OD's point of view, this will hold down wages. I have worked for Luxottica 3 times now, and twice because the chains I was working for were sold to them. I last worked for a corporate Pearle and saw major cuts in commissions. I took a paycut of over 4000 per year because of their cuts in commissions, or would have had I stayed to make peanuts for a full year.

The customer will begin to see prices rise with Luxottica owning a large vision insurance company and most of the country's big chains. I'm actually suprised they bought DOC. It is mostly in Michigan and the economy there is in the tank. Cole bought Nu-Vision several years back, another Detroit area chain, and converted many of them to Pearles. Many of those Pearles are now gone, and more are closing after Pearle became part of Luxottica. I don't quite know why Luxottica wants to own so many Detroit stores and you can bet a good number of those will close as the merger continues. Also you can bet DOC's main lab will close.

I don't know. I just don't think Luxottica becoming this supercompany is that good for any of us.

**cocoisland58** · 03-05-2007, 04:55 AM

Originally Posted by hmsmark

I actually lament this deal. I worked as an optician for years in Detroit before moving to Chicago. I never worked for DOC, but I liked the fact that they were around. Its not good for Luxottica to own every freaking chain!

They don't. There is still one very important chain in the Detroit area doing very well.