Luxottica Buying Oakley???

[ExclusiveOnly]

Hey, this rumor keeps coming around, anybody know if there is any truth to it?

I heard that the deal for Luxottica buying Oakley is just about done. I don't know if this is good or bad considering I carry Paul Smith, and am exlcusive with it, but if Luxottica grabs it, it is going to put it everywhere, including lenscrafters....this is not good news..

If anybody heard anything please let me know.

EO

[Chris Ryser]

There are no press releases on this subject, and therefore is just a rumor until announced otherwise.

[Jedi]

Originally Posted by ExclusiveOnly

Hey, this rumor keeps coming around, anybody know if there is any truth to it?

I heard that the deal for Luxottica buying Oakley is just about done. I don't know if this is good or bad considering I carry Paul Smith, and am exlcusive with it, but if Luxottica grabs it, it is going to put it everywhere, including lenscrafters....this is not good news..

If anybody heard anything please let me know.

EO

You don't think Oakley will put Paul Smith and Oliver Peoples everywhere?

[impact500]

Goldman Sachs issued a report suggesting the LUX - Oakley buyout potential. Subsequent news reports stated that Nike might be looking also. One key clue is that Oakley has modified their stock option plan. From a recent SEC filng:

"In the event of a Severance following a Change in Control, the provisions above apply with two exceptions. First, an Eligible Employee need not be employed for at least 2/3 of the performance period underlying the awards to be eligible for any payment of awards under the LTIP (Long Term Incentive Plan). Second, awards earned under the LTIP would be paid out at 100% of the pro rated amount payable rather than 50%."

Jim Jananrd owns 64% of Oakley's stock, so he controls all decisions. The fact that the stock option plan buy-out contingency was made more favorable may be a key clue that a deal is desired and/or expected.

[pauly47]

our local Empire Vision just added Oakley...there goes the neighbourhood...both sun and ophthalmic

[For-Life]

So lets assume that Nike or Lux buy it. What does that mean for the industry? If Nike buys it who will distribute it?

[drk]

I wondered the same thing...

If Lux buys Oakley, you could assume they did it for their SGH. I think that would only leave Maui Jim as the only non-Lux SGH brand (hint: buy stock in MJ if Lux buys Oakley?). I would expect the (tepid, IMO) Oakley ophthalmic wouldn't be a big factor in the deal, nor would the OSA or Oliver Peoples "baggage" fit into Lux's strategy. I'd see that as a sell-off.

If Nike buys Oakley, that would be more of a suprise!

I can picture Nike having "Oakley-envy", and Nike has been fairly derivative of Oakley in their sun designs...If you can't beat 'em...copy them. Why buy them?

Even if they did, Nike wouldn't drop their own branded sunwear/ophthalmic lines...they'd have to be separate design teams. Plus, Nike has no distribution other than Marchon. Would Marchon be involved? Doubtful. Would Nike distribute outside of Marchon? Doubtful.

I can't see how Nike would make it work.


I don't see the whole thing happening. Oakley is more and more into apparel and other accessories, and moving into ophthalmics. Lux can only want their sunglass business. It would be a big waste.

[For-Life]

Nike signed a long term deal with Marchon last year, so I think the distribution would stay the same. Nike has been known for acquisitions in the past with Bauer for hockey, and Converse.

[Chris Ryser]

Originally Posted by drk

Oakley is more and more into apparel and other accessories, and moving into ophthalmics. Lux can only want their sunglass business. It would be a big waste

And maybe not. Maybe LC stores will expand into aparel to draw more customer. Buy glasses and get a free oakley brand ...........................hand bag

[optirep]

Originally Posted by drk

I wondered the same thing...

If Lux buys Oakley, you could assume they did it for their SGH. I think that would only leave Maui Jim as the only non-Lux SGH brand (hint: buy stock in MJ if Lux buys Oakley?). I would expect the (tepid, IMO) Oakley ophthalmic wouldn't be a big factor in the deal, nor would the OSA or Oliver Peoples "baggage" fit into Lux's strategy. I'd see that as a sell-off.

If Nike buys Oakley, that would be more of a suprise!

I can picture Nike having "Oakley-envy", and Nike has been fairly derivative of Oakley in their sun designs...If you can't beat 'em...copy them. Why buy them?

Even if they did, Nike wouldn't drop their own branded sunwear/ophthalmic lines...they'd have to be separate design teams. Plus, Nike has no distribution other than Marchon. Would Marchon be involved? Doubtful. Would Nike distribute outside of Marchon? Doubtful.

I can't see how Nike would make it work.


I don't see the whole thing happening. Oakley is more and more into apparel and other accessories, and moving into ophthalmics. Lux can only want their sunglass business. It would be a big waste.

Marchon only sells Nike to the optical channel of trade. Nike handles the business for non optical retail stores.
I have a watch store that buys Nike from a watch vendor!

Also Maui is a private company!

[optirep]

Originally Posted by dad2wrk

Are you sure? I haven't heard that?... but then again, Chanel was
a shock for a lot of people!

I don't think Chanel was a shock! Luxottica was making Chanel for the Chanel stores long before expanded to optical!

[Scott R]

If the quality of Oliver Peoples and Paul Smith ends up in the same catagory as Chanel and Prada it will be a dark day. As I see it the Oakley aquisition of Oliver Peoples and Paul Smith was one of the best things to happened them, backorders went down tremendously and the quality didnt suffer.

[Scott R]

I just found a NY Times dated today that says its a done deal.

[AWTECH]

drk said:

If Lux buys Oakley, you could assume they did it for their SGH. I think that would only leave Maui Jim as the only non-Lux SGH brand (hint: buy stock in MJ if Lux buys Oakley?).

As was pointed out by optirep, Maui Jim is a private company. There is no public all polarized sunglass company that I am aware of. I think Costa del Mar is the closest since they are owned by AT Cross (of Pen fame), and the polarized brand has accounted for more than 50% of the company profits since they bought the company.

[eyesonyou]

whats adone deal''''''''''''''''''''' lux or nike......... I have been seeing SGH displaying alot of oakley stuff.........

Originally Posted by Scott R

I just found a NY Times dated today that says its a done deal.

[Scott R]

The Lux-Oakley Deal. The Empire Grows.

[eyesonyou]

http://query.nytimes.com/gst/fullpag...51C1A9649C8B63

Originally Posted by ExclusiveOnly

Hey, this rumor keeps coming around, anybody know if there is any truth to it?

I heard that the deal for Luxottica buying Oakley is just about done. I don't know if this is good or bad considering I carry Paul Smith, and am exlcusive with it, but if Luxottica grabs it, it is going to put it everywhere, including lenscrafters....this is not good news..

If anybody heard anything please let me know.

EO

[Scott R]

Google Luxottica Oakley

[Ph0t0n]

http://www.bike-eu.com/news/2356/oakley-added-to-luxottica-brand-portfolio%3F.html

[Johns]

I hope the deal goes through!

Oakley deserves to be owned by a company like Lux!

In fact, they're made for each other!

What a team !

[makingaspectacle]

Although Oakley is a publicly traded company, Jim Jannard still owns 65% of Oakley; controlling stock held by a single person. This coupled with the fact that his personal net worth is 1.4 billion suggests that the company will be acquired only if he wants it to. Point, Jannard. You do the math. He obviously doesn't need the money that his shares would bring.

How often do get to own and be in control of such an amazing thing and have the ability to give that to your kids? In the long run, his shares of the company will be worth far more than Luxottica can throw at him even if they over value it. I don't believe that everything has a price in this world.

Regarding Oliver Peoples, I have faith that they will remain unchanged no matter who owns it. Leonardo Del Vecchio owns 5500 retail stores. There will never be enough Oliver Peoples frames produced in the history of time to provide product for all of those stores. Any fears of OP landing in large distribution situation can be quickly put to rest. And everybody can stop saying "You go, girl" and "You da man" I've had about enough of those expressions to last 2 lifetimes. That was a little off subject, but I thought it should be said.

[Jedi]

Originally Posted by makingaspectacle

Regarding Oliver Peoples, I have faith that they will remain unchanged no matter who owns it. Leonardo Del Vecchio owns 5500 retail stores. There will never be enough Oliver Peoples frames produced in the history of time to provide product for all of those stores. Any fears of OP landing in large distribution situation can be quickly put to rest. And everybody can stop saying "You go, girl" and "You da man" I've had about enough of those expressions to last 2 lifetimes. That was a little off subject, but I thought it should be said.

Otherwise, a well thought out post, but OP will be everywhere by the end of next year, so will Paul Smith. Regardless off who owns it. Personally I don't think Oakley would make these aqusititions (sp?), OP, PS, OSA, just to sell out to Lux. I'm thinking Jannard has another agenda.

[Jubilee]

Originally Posted by eyesonyou

http://query.nytimes.com/gst/fullpag...51C1A9649C8B63

That article was from Dec 2002......

[LENNY]

Originally Posted by Jubilee

That article was from Dec 2002......

And now?

[impact500]

Press release this evening. LUX to buy Oakley.