"VANCOUVER – Online optical company Coastal.com (TSX:COA) is being sold to France-based Essilor International for $445 million.
The Vancouver-based company, operator of such websites as ClearlyContacts.com among others, says Essilor has offered $12.45 per share in cash for all of its shares."
Close to 20% premium on yesterdays closing price.
Read HERE.
WOW. That is big news.
So how will independents, particularly Canadians, react to this?
Maybe I will send my E rep a congratulations text message and just stop all business with them.
Interesting thing is that in Quebec, Essilor has quite a strong presence and a long history, as Chris has pointed out before. Given the Quebec Orders of Opticians and Optometrists very strong anti-online positions here, with court cases against CC etc... what on earth is Essilor going to do - what is the game plan here? Very very hot potato.
Truly time to pull the old Luxottica boycot. With Essilors deep roots in Quebec, bed pals with the optometry and opticains school, major lab for most Quebec ECP.....wiil they now contiue to sell online and break all of the rules of both Que optical orders.
Originally Posted by coupe
which companies have no connection to essilor? is hoya clean? zeiss?
i want to drop them more than ever...
Why now?
Why bother?
The time for such measures is LONG past!
The only major manufacturer not at least partially owned or affiliated with E is Hoya.
I totally get your sentiment. In fact though, I think now is a great time to cut off essilor. I think they have overpaid for this thing and this could be a tipping point of independents and even independent chain stores really dropping them en masse. We'll see.
Seiko? Zeiss? Younger? Vision Ease?
Wait and see what the big E does with this money losing, but market-share-gaining biz. Do they stop the free pair giveaways. Do they shift production to Asia (I'm assuming all the free form generators they bought are in North America) and price like Zenni. Do they expand the shoe sales (shoe-me.ca)? Do they continue with the expensive internet advertising? Is it time to make a profit or keep the losses to offset income in other operations.
In any event not dealing with the big E will be near impossible soon.
Good questions gibby,
Can someone paint a picture of a better and realistic outcome of CC?
I am not a big supporter of E or L but who else could have bought this?
E & L both have a lot to loose if the market does not change the sad direction that is being driven by online?
they must have a strategy to move sales up ($) and not keep giving it away........
The barriers to entry are low and there are new sites popping up all the time. There is no way E or L can buy them all. Maybe hardy himself will start anew and try to sell it again to e.
We live in interesting times....who's going to buy WP....
If you read the Sec 40-F filings as well as the SC 13's and SC 13D you would all have a much clearer understanding of what is happening and what could have been done. Without reading this then you have no idea.
Also read the institutional ownership changes.
All is publc information. Try looking it up on nasdaq.com. Use Google and wikpedia for further details
idispense,
please enlighten us with the coles notes version. Not sure I can navigate all that?
I hope you are not pinning the hope of legislative changes to stop CC? It was a pipe dream..........
It's not difficult reading.
It seems odd to me that anyone in any province other that Bc Would continue to support a company who a) Breaks all provincial regulations b) because they are doing things that regulated are not allowed to do are our competition. I am ok with Fair competition.. This is NOT FAIR..
I for one will start refusing to sell all essilor products...
fwiw i began yesterday - had a multiple pair client who might have been fitted with varilux who will be the proud owner of some hoya lenses instead.
please, please tell me that e does not own hoya.....oy vey.
Most of us are busy with no time to read a 105 page document. Spill the cole's version! Or perhaps you haven't even read it.
Last edited by HindSight2020; 02-28-2014 at 08:07 AM.
Hoya is 100% Hoya. Zeiss in Canada is a second cousin to Essilor. The Sola/Zeiss/Centennial/Riverside family is now acquainted with Essilor. Seiko is Seiko for now - although Hoya owns their freeform patent rights and design technology. Perhaps Hoya eventually fully acquires Seiko? Both are very good.
Younger has no market share in Canada and no lab, they are simply a blank manufacturer. Shamir is now operating in Canada and also owned by Essilor. Vision-Ease is just about on their last breath in Canada and also just a blank manufacturer.
Who else is left? Oh yes, Rodenstock - almost on their last breath also. The only others left that are independent and still surviving (and some thriving) are Optik K&R, C&C Optical, Plastic Plus and Vision Tech Labs (10 locations affiliated with Hoya and I hear are doing very well). Lastly FYI is booming with their over 300 locations of mixed acquisitions and Vision Source locations.
I think that just about covers all of them. Support your independent folks while you still can before they all get acquired!
Yes indeed!! A "boycott" such as this will have the effect of a flea kicking an elephant.
Ophthalmic Optician, Society to Advance Opticianry
I guess it depends on whether enough independents (chains and single location) react to this in a big enough way.
A major amount of E's revenue comes from independents and if we change our buying habits then even E can be vulnerable to the sea-changes taking place.
Whatever you think of this acquisition by E, it is not a money-maker, it is a profit-shrinker. Margins are going down. The tide is going out and all boats will be in shallower waters. In our industry, due to the low barriers, independents have plenty of options. At one point they will all be awoken by the smell of fear and they will adapt or die.
By the way, the amount of sales which Essilor will lose because of my own little move, would have been more than enough to support a full-time E sales rep. Still a flea, yes, but it won't go un-noticed.
Last edited by optimensch; 02-28-2014 at 08:38 AM.
E also recently purchased framedisplays.com (why do they need frame displays?).
I also have heard that over the last year they have been aggressive in their pursuit of contracts with retailers landing Costco and Walmart. Also heard FYI and IRIS have Essilor contracts. From what I have seen, it is apparent Costco, Walmart use almost exclusively (if not entirely) E. Not sure about FYI - don't they have their own lab and lenses?
Makes sense for E to lock up contracts, buy up smaller lens manufacturers, labs prior to CC purchase making it difficult to switch lens manufacturers. They seem to be creating a monopoly.
correction.
essilor owns 50% of Shamir. A move that gives "E" access to Shamir's industry leading "Attitude" design.
Shamir is run by Shamir. "E" has no say in their sales strategies, which are far different that essilor's.
Even 1% dirties a company's image. Any percentage of ownership by the eventually leads to 100%. They're a buyer, not a seller.
I own 10 offices, but my business is not even measurable on their scope. Not even a blip.
The only one thinking the flea's kick will be noticed is the flea.
Ophthalmic Optician, Society to Advance Opticianry
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