Luxottica, Essilor in 46 billion euro merger deal to create eyewear giant: Sources
Luxottica, Essilor in 46 billion euro merger deal to create eyewear giant: Sources
1 Hour Ago Reuters
https://fm.cnbc.com/applications/cnb...g?v=1484527672Jean-Christophe Verhaegen | AFP | Getty Images
Ophthalmic lenses on display in the laboratory of an Essilor factory.
Italy's Luxottica and France's Essilor have agreed a 46-billion euro ($49 billion) merger deal to create a global powerhouse in the eyewear industry, two sources with knowledge of the matter said.
The deal, one of Europe's largest cross-border tie-ups, is expected to be announced before the market opens on Monday. It brings together Luxottica, the world's top spectacles maker with brands such as Oakley and Ray Ban, with Essilor, the world's leading manufacturer of ophthalmic lenses.
The deal will see Luxottica's 81-year old founder, Leonardo Del Vecchio, take a 31 percent stake in the merged group through his family holding Delfin, becoming the biggest shareholder in the company, one of the sources said.
That source described the tie-up as a "merger of equals." Luxottica has a market value of around 24 billion euros, compared to Essilor's 22 billion euros, giving the merged group a combined market capitalization of 46 billion euros.
The two companies' combined revenues totaled nearly 16 billion euros in 2015 and together they employed some 140,000 people.
The second source said the merged group would be headquartered in Paris and listed on the Paris stock exchange.
https://fm.cnbc.com/applications/cnb...g?v=1484299241Europe earnings at inflection point: UBS Friday, 13 Jan 2017 | 4:07 AM ET | 02:25
The fast-growing eyewear market was valued at around $100 billion in 2015, according to U.S.-based market consulting company Grand View Research. It is expected to keep expanding at a healthy pace in coming years because of an ageing population as well as increasing awareness about eye care and vision problems, with Latin America and Asia seen as key markets for growth.
The Financial Times reported that Del Vecchio would become executive chairman of the merged group and Essilor's chairman and chief executive, Hubert Sagnieres, 60, will become executive vice-chairman.
Luxottica has been dogged by management upheaval in recent years, raising questions over Del Vecchio's succession plans and strategy. Some insiders have said a merger could help settle such issues.
Luxottica announced in January 2016 the departure of its third chief executive in 17 months when Adil Mehboob-Khan, a former Procter & Gamble executive, stepped down and Del Vecchio tightened his grip on the group by taking on executive powers.
Long-standing CEO Andrea Guerra quit in 2014 following a rift with Del Vecchio. His successor, Enrico Cavatorta, left after only six weeks into the job, also because of differences with Del Vecchio.
Through Delfin, Del Vecchio, who founded Luxottica in 1961, owns 62 percent of the group, which had revenues of 9 billion euros in 2015, according to Luxottica's website. Fashion designer Giorgio Armani has a 5 percent stake in the Italian group.
Luxottica cut its full-year outlook in July, blaming uncertain markets, as global security threats cloud the outlook for tourism and consumer spending.
The group said in September 2014 that a deal with Essilor had been explored about a year and a half earlier but was not pursued at the time because the right conditions were not in place.
Back then, it cited shareholding governance issues among the reasons why the deal had not gone ahead. In March and April last year, Luxottica denied press reports of a possible tie-up with Essilor and Germany's Carl Zeiss, saying the only relationship it had with the two groups was that they both were among its suppliers.
source: ===========>
https://www.cnbc.com/2017/01/15/luxo...nt-source.html
Now it is finally happening .........................................
It was written in the stars already a few years back and is finally happening.
The 2 together are out for total domination of the optical wholesale and retail market, which is the last stand that still contains most independent retail - optical owners.
They will be a lot more active in every sector of the field, and work against protective regulations of the profession, politically and any other way, a global territory to eliminate the unwanted, and dominate the largest part of the eyeglass trade on every level.
Once the whole deal is done and sealed we will see another tsunami of takeovers in the retail field and maybe even before then.
This will affect everybody in the independent optical manufacturing, laboratory, wholesale and retail business, and will change the eyeglass scene forever, even more as it already has.
January 2017 a date to remember.
will create a company with about 130,000 employees, according to the FT report.......
Monday, 16 January 2017 | MYT 11:59 AM
Luxottica, Essilor agree to US $53bil merger,
FT says
MILAN: Luxottica Group SpA, the world’s largest maker of eyewear including Ray-Bans, has agreed to merge with French rival Essilor International SA, the Financial Times reported, creating a combined company with about US$16bil in revenue.
Leonardo Del Vecchio, Luxottica’s founder, will become the single largest shareholder with a stake of about 30 percent, in a deal that values the combined companies at 50 billion euro (US$53bil), the newspaper reported, citing unidentified people with direct knowledge of the agreement.
The deal creates a branded goods giant with a market value that rivals the second-biggest luxury maker Hermes International.
Milan-based Luxottica, which also makes frames for luxury brands such as Armani, Chanel, and Prada, has a market value of about 24 billion euros as of Jan. 13, compared with about 22 billion euros for lens maker Essilor. Luxottica is also developing voice-activated glasses that coach cyclists and runners.
“This is a merger where they will be able to complement each other and create economies of scale on the supply chain,” said Catherine Lim, a Bloomberg Intelligence analyst.
“Luxottica is a licensee of major branded eye-wear while Essilor has been more focused on making lenses.”
Luxottica increasingly competes with large luxury players such as Kering, in a global eyewear industry worth about US$121bil last year, according to data from Euromonitor.
The company’s expansion into lenses is attractive amid rising consumer demand and as the segment offers high margins, according to Bloomberg Intelligence.
A spokeswoman for Essilor, which is working on smart glasses as well, had no comment when reached outside business hours. Luxottica representatives could not be immediately reached for comment.
Demand for eyewear is expanding in emerging markets with more than 2.3 billion people in Asia, Africa and Latin America needing optical frames, according to Exane BNP Paribas.
The two companies have been on a “collision course,” Exane said in a note in October as Luxottica moves into lens manufacturing while Essilor advances into frames and acquires control of online eyewear retailers. Lens manufacturing will be a big deal for Luxottica as it makes it independent for sun and prescription lenses, it said.
Luxottica announced last March it will seek to accelerate growth by investing more than 1.5 billion euros over three years.
Del Vecchio, Luxottica’s chairman and Italy’s second-richest person, will be executive chairman of the merged company, while Essilor chairman and chief executive Hubert Sagnieres will become executive vice chairman, the FT reported.
The deal, due to be announced before the market opens Monday, will create a company with about 130,000 employees, according to the FT report. - Bloomberg
Source: ==============>
http://www.thestar.com.my/business/b...merger-ft-says
This is one of the biggest deals ever.
What do you say?
Who has supported them on their climb up the mountain ? .............................
Quote:
Luxottica Group, the world’s largest eyewear maker, and France-based rival lens maker Essilor International agreed to merge, the Financial Times reported. Bloomberg's Dave McCombs has more on "Bloomberg Markets." (Source: Bloomberg)
The two largest aggressive optical steamrollers are now becoming one giant one, out to control and dominate the optical world from manufacturing to the retail end in every detail.
Who has supported them on their climb up the mountain ?
We all have one way or the other.
What do you say ?
You better start wearing your OSB, drk
Quote:
Originally Posted by
drk
Unholy crap.
This is probably the biggest thing in optical history.
yes........................................drk
You better start wearing your OSB (Optometric Seat Belt) at all times from now on.
in the near future Lenscrafters with their over 1,000 stores will service on-line...
Quote:
Originally Posted by
drk
I think the big brick-crappers right now would be VSP. A substantial amount of vision care in the U.S. market, at least, funnels through these pre-paid plans.
This cannot be good for VSP. I wouldn't be surprised to see them "de-list" essilor products, now, or even Luxottica products.
That would be a problem.
As far as I know, is that Luxottica is als owner of some vision insurance companies.
Furthermore do not forget that in the near future Lenscrafters with their over 1,000 stores will service on-line purchased eyeglasses for no or with a fee.
They will also be the sole owners of the most on-line optical on the globe.
.............and yes they will be stealing the crumbs from everybody,
Quote:
Originally Posted by
drk
Ok, let's clear our heads.
What will this allow essilux to do, that they haven't done before?
But they have the power to squeeze the price point as low as they want to go, and that's what is dangerous. But it's unlikely that they are interested in stealing the crumbs from the moms and pops.
It is not essilux ..........................................it is, or will be " Sources"
.............and yes they will be stealing the crumbs from everybody, including moms and pops,
NewYork Times seems to be off again ....................
Quote:
Originally Posted by
Robert Martellaro
NewYork Times seems to be off again ...........................................Essilor right now is already dominating in the most populated country of INDIA.
It is a perfect word and meaning............
Quote:
Originally Posted by
drk
"Sources".
Really. Interesting.
It is a perfect word and meaning............and of top of it it is the same in French as in English.
