ITALY/US. Luxottica, the world’s leading eyewear producer, has agreed to acquire rival Oakley Inc for about US$2.03 billion, merging the two companies into a hugely powerful global force.
The companies announced yesterday that they have entered into a “definitive merger agreement” with the unanimous approval of both companies’ Boards of Directors.
Under the agreement, Luxottica Group will acquire all of the outstanding shares of Oakley for a cash purchase price of US$29.30 per share, together with the purchase of all outstanding options and other equity rights at the same price per share less the exercise price.
“This is a milestone for our group“ |
LEONARDO DEL VECCHIO, CHAIRMAN, LUXOTTICA GROUP |
The total purchase price will be approximately US$2.1 billion, representing an approximate premium of +18% over the 30-day average New York Stock Exchange trading price of Oakley shares and approximately +24% over the three-month average trading price. Oakley said that its Board of Directors fully supports the transaction and intends to recommend it to shareholders for approval.
Luxottica Group Chairman Leonardo Del Vecchio said: “This is a milestone for our group. Significant changes in market dynamics require industry leaders to perfect a mix of best-in-class products and marketing with technical and operational capabilities. Luxottica has long admired the Oakley business and corporate culture, inspired by founder Jim Jannard.
“Oakley and Luxottica share a mutual commitment to quality, innovation, and technical skills – qualities which will help us to solidify Oakley’s brand position and Luxottica’s strong leadership in the market. I look forward to welcoming the talented Oakley management team, led by Scott Olivet and Colin Baden, to our group.”
Jim Jannard, Oakley Inc Founder, Chairman and Chief Mad Scientist commented: “Mr Del Vecchio and I started in the industry at about the same time and took our companies on different paths. We were both relentless in our desire to create great products and build unique organizations and I have always had tremendous respect for Mr Del Vecchio as a partner and competitor.
“I am very excited that we have found a way to join forces. Oakley’s technology and performance is one of the world’s best kept secrets and this partnership should empower our ability to tell our story throughout the world. I am encouraged by the fact that Luxottica’s management has come to understand the unique, rogue nature of Oakley in the eyewear industry and is committed to preserving it.
“I am encouraged by the fact that Luxottica’s management has come to understand the unique, rogue nature of Oakley in the eyewear industry and is committed to preserving it“ |
JIM JANNARD, FOUNDER, CHAIRMAN AND CHIEF MAD SCIENTIST, OAKLEY INC |
“Oakley will continue to be Oakley but with much greater resources and a platform for realizing the true potential of our brand and company. Given the opportunities in front of us, I wrote to Mr Del Vecchio this morning indicating my intent to make a substantial investment in the company after the transaction closes.”
In their joint statement the two companies underlined the key aspects of the deal:
– Oakley is an innovative and iconic brand: a leading global sports, technology and lifestyle company with a unique design point of view
– Oakley has tremendous growth potential across numerous market segments
– Luxottica provides a global platform to showcase the Oakley brands while enhancing its international distribution capabilities
– This merger combines two strong, complementary business models
– This merger establishes a stronger and more diversified portfolio of owned and licensed brands
– Combined companies’ retail platform includes luxury, fashion, lifestyle and sports concepts
ABOUT LUXOTTICA GROUP
Luxottica Group is a global leader in eyewear, with over 5,800 optical and sun retail stores in North America, Asia Pacific, China and Europe and a strong brand portfolio that includes Ray-Ban, the best-selling sun and prescription eyewear brand in the world, as well as license brands Bvlgari, Burberry, Chanel, Dolce & Gabbana, Donna Karan, Polo Ralph Lauren, Prada and Versace, and key house brands Vogue, Persol, Arnette and REVO.
In addition to a global wholesale network that touches 130 countries, the Group manages leading retail brands such as LensCrafters and Pearle Vision in North America, OPSM and Laubman & Pank in Asia Pacific, and Sunglass Hut globally. The Group’s products are designed and manufactured in six Italy-based manufacturing plants and in the only two China-based plants wholly-owned by a premium eyewear manufacturer.
For fiscal year 2006, Luxottica Group posted consolidated net sales of €4.7 billion. Additional information on the Group is available at www.luxottica.com
ABOUT OAKLEY
Oakley is a global leader in sport performance optics, including premium sunglasses, goggles, and prescription eyewear. Headquartered in Southern California, the company’s optics brand portfolio includes Dragon, Eye Safety Systems, Fox Racing, Mosley Tribes, Oliver Peoples, and Paul Smith Spectacles.
In addition to its global wholesale business, the company operates retail chains including Bright Eyes, Oakley Stores, Sunglass Icon and The Optical Shop of Aspen. The company also offers a wide selection of Oakley-branded apparel, footwear, watches and accessories.
Additional information is available at www.oakley.com.
