What was eventually expected to happen has now transpired.
http://www.essilor.com/en/Press/News/Pages/AcquisitionofCoastalcom.aspx?ReturnUrl=http://www.essilor.com/en/Press/News/Pages/Home.aspx
What was eventually expected to happen has now transpired.
http://www.essilor.com/en/Press/News/Pages/AcquisitionofCoastalcom.aspx?ReturnUrl=http://www.essilor.com/en/Press/News/Pages/Home.aspx
that was fast. we were just talking about this recently and boom.
essilor has a big footprint at the montreal school of optometry historically. i am looking forward to seeing how this plays out.
i am going to stop all new orders at E as of today, i am curious how long until the sales rep comes calling to see what's up.
Well the prophecy has happened Essilor has bought Clearly Contacts for $445 million. Obviously they believe any reprecussions or risks to other client bases are minmal and this is our new future. It might be better to set up your own web site and ignore the regulations if you want to compete and survive unless you specialize.
Last edited by ex-optician; 02-27-2014 at 11:09 AM. Reason: typo
At least maybe Essilor will end the practice of giving glasses away.
This is a major gamble.
Earlier acquisitions by E were about expanding by buying up labs, equipment companies, lens companies etc. None of these competed directly with ODs/ECPs. Then came Frames Direct and Eyebuy direct which flew under most ECPs radar screen. The Eyemed exclusivity deal caught people's eyes as it was accompanied by onerous revisions to how the plan worked. Now this. Could this be the beginning of a backlash or will the vast majority of ECPs continue to enjoy the Kool Aid?
Last edited by Stan Tabor; 02-27-2014 at 09:47 AM.
I'm disgusted at how low they can go. Really disgusted.
What if they cleaned up Coastal's MO? Required Rxs? Raised prices? Then would they be good guys?
Heck no!
Sadly, Stan, I think the koolaid still tastes pretty good to most.
My boss is pisssssssssssed. This is gonna be a busy day for Essilor Lab reps.
When ( I know it is a dream) will the gouverment and our professional orders see the light.
Commenting on the acquisition, Hubert Sagnières, Essilor’s Chairman and Chief Executive Officer, said:
“The Internet has an important role to play in helping us to fulfill our corporate mission of enabling people
to enjoy a better life through better sight. The first step towards good visual health is a comprehensive
eye examination. But in our industry, as in many others, the purchasing process is becoming more
diversified. The Internet, if used properly, can help to drive market growth by educating consumers and
making it more convenient for them to enjoy good visual health. With Coastal.com, Essilor is acquiring a
recognized online vision care platform. Our commitment is to contribute to shape this distribution channel
for the benefit of the entire industry as well as consumers.”
If anyone believes that....you will also want to believe essilor isnt using names and addresses from their crizal rebate program to advertise their online company!!
This is sad. There is another thread lighting up about Eyemed taking over schedules and another about eyemed charge backs. So here is what is happening. Independents are taking on more eyemed work at enormous discounts which add to the profits of Lux (which owns eyemed and glasses.com and target.com) at the expense of the ECP. Your eyemed lab work must go to Essilor which owns coastal, frames direct and eyebuy direct. Sounds like a real conundrum. Build a practice around supporting an entity making moves to put your dispensary out of business.
Run and take cover. Or is the best defense....Offense.........Any ideas on what to do to combat these atrocities....I'm all ears.... any change to your current business model going to take place or is it status quo? Who moved my cheese?
I'd suggest we advocate for a single payer health care system.
What happens when you are free from genuflecting to the insurance companies for the pool of patients they graciously allow us to access as long as we give them an ever increasing piece of the pie?
How many of you business owners would like to wash your hands of providing health care for employees?
(Cue John Lennon) Imagine ONE set of rules/forms for the industry!!! And maybe (I know this is a stretch) holding your congressman accountable to a vote that hurts your small business.
I dare say the Canadians are better positioned to fight what's happening to them now as opposed to what's been happening to the US for 20+ years.
(Now to seek cover!!!)
Last edited by Uncle Fester; 02-27-2014 at 05:39 PM.
What a price! Double their yearly Gross!!!!!
I have been holding onto what I call a "baby nuke". I have some nasty evidence of executives saying some really damning ****.
http://www.opticians.cc
Creator of the industries 1st HTML5 Browser based tracer software.
Creator of the industries 1st Mac tracer software.
Creator of the industries 1st Linux tracer software.
So now you get it all, the most active on-line optical going to Essilor. The for years most admired optical supplier owns now some of worlds largest retails market together with the worlds largest manufacturing markets in the optical business, counting all the aquisitions together.
=================================
Essilor Expands in Online Distribution
With Acquisition of Coastal.com
Offer to acquire Coastal.com, a leading online vision care retailer
Driving better growth and information for the industry
Charenton-le-Pont, France (February 27, 2014) – Essilor International today announced that it has
entered into a binding agreement to acquire all of the outstanding common stock of Coastal Contacts (Coastal.com), one of the world’s leading online vision care retailers.
Based in Vancouver, British Columbia (Canada), Coastal.com is listed on the Toronto Stock Exchange and on NASDAQ and reported revenue of CAD 218 million for the fiscal year ended October 31, 2013.
Founded in 2000, the company designs and distributes one of the widest online selections of optical
equipment, including contact lenses, prescription and non-prescription eyeglasses, sunglasses and
various accessories. Products are sold through several local websites covering mainly North America and
Europe as well as the Asia-Pacific region and Brazil. The company has more than five million customers worldwide.
Commenting on the acquisition, Hubert Sagnières, Essilor’s Chairman and Chief Executive Officer, said:
“The Internet has an important role to play in helping us to fulfill our corporate mission of enabling people to enjoy a better life through better sight. The first step towards good visual health is a comprehensive eye examination. But in our industry, as in many others, the purchasing process is becoming more diversified. The Internet, if used properly, can help to drive market growth by educating consumers and making it more convenient for them to enjoy good visual health. With Coastal.com, Essilor is acquiring a recognized online vision care platform. Our commitment is to contribute to shape this distribution channel for the benefit of the entire industry as well as consumers.”
Roger Hardy, Chairman and Chief Executive Officer of Coastal.com, said: “The Board of Directors of
Coastal.com unanimously recommend that shareholders accept Essilor’s offer. As a member of the
world’s leading vision care group, we will be able to offer our customers even better service. Combining
Coastal.com’s expertise in online sales with Essilor’s innovation, marketing and logistics capabilities will
allow us to focus our offer more effectively on the various categories of consumers.”
Online sales account for roughly 4% of the global vision care market, which is estimated at some USD 100 billion based on retail prices. They are likely to continue growing at a double-digit rate for the News Release
Page 2 / 2
Online sales account for roughly 4% of the global vision care market, which is estimated at some USD 100 billion based on retail prices. They are likely to continue growing at a double-digit rate for the foreseeable future. Essilor has been involved in online distribution for several years through its
subsidiaries FramesDirect and EyeBuyDirect and through MyOnlineOptical, a turnkey e-commerce
engine that enables American eyecare professionals to offer an online complement to their in-store
offerings. Essilor intends to leverage online distribution to improve the quality of vision care information, optimize the deployment of its products and of new online technologies, and provide wider access to vision correction solutions for existing eyeglass wearers and for the 2.5 billion potential wearers worldwide.
Essilor is offering CAD 12.45 per Coastal.com share, which represents a premium of approximately 20%
to the closing share price of CAD 10.39 per share on February 26, 2014 and approximately 42% to the weighted average price of CAD 8.74 quoted on the Toronto Stock Exchange over the last 60 trading days. The transaction represents a net equity value of approximately CAD 430 million.
The transaction will be structured as an arrangement under the Canada Business Corporations Act and is subject among others to the approval of the Competition Bureau in Canada and to that
foreseeable future. Essilor has been involved in online distribution for several years through its
subsidiaries FramesDirect and EyeBuyDirect and through MyOnlineOptical, a turnkey e-commerce
engine that enables American eyecare professionals to offer an online complement to their in-store
offerings. Essilor intends to leverage online distribution to improve the quality of vision care information, optimize the deployment of its products and of new online technologies, and provide wider access to vision correction solutions for existing eyeglass wearers and for the 2.5 billion potential wearers worldwide.
Essilor is offering CAD 12.45 per Coastal.com share, which represents a premium of approximately 20% to the closing share price of CAD 10.39 per share on February 26, 2014 and approximately 42% to the weighted average price of CAD 8.74 quoted on the Toronto Stock Exchange over the last 60 trading days. The transaction represents a net equity value of approximately CAD 430 million.
The transaction will be structured as an arrangement under the Canada Business Corporations Act and is subject among others to the approval of the Competition Bureau in Canada and to that of Coastal.com’s shareholders. Roger Hardy, founder, Chairman and CEO, along with Coastal.com’s directors and officers, have entered into support and voting agreements pursuant to which they have agreed to vote their shares of Coastal.com, representing 16% of all outstanding shares, in favor of the transaction. The transaction is expected to be completed by the end of April 2014.
======================================
Renewed prediction for the future made here on Optiboard in th early 2000's.
The next step will be retail stores in the optical that will service glasses purchased on line from adjustments to repairs..............either financed privately or also by Essilor.
Remaining optical retailers will continue selling their products as before and there will never be an optical revolt.
Yes coupe, this is a dream. The governments could have done somethings years ago, and so would have professional bodies.
This continent was the easiest playground for the giants to try out their imperialistic theories and turn them into facts.
I have periodically raised CC right here on Optiboard and tried to get serious attention but was laughed off in general always by the same posters. Obviously Essilor has been watching them carefully and found their approach interesting, so do not expect it to go away.
The grip of the boa constrictor is getting tighter and tighter. Opticians could still survive by selling at cost plus++++ service charges at the choice of xutomers.
Don't look forward..........................take some action.
They now own the 2 largest plus one not far behind of the on-liners plus the one in India with over 500 emplyees.
That is the way they are going.
They also have had a foothold in the School of Optometry in Montreal since 1963.............and have been loved forever.
We'll see if the sheep at the school of optometry continue to be so loving....
I think independent chains, not owned by L or E, are more vulnerable than smaller and nimble independents with 1 or 2 locations. We can more easily turn on a dime with marketing offers and manage costs.
Here's a prediction for the coming paradigm shift: Independents will increase exam prices a bit and INCLUDE a pair of glasses in the price. Extras, like progressives, transitions for additional fees. Glasses/eye exam/service must be bundled - and marketed.
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