PARIS (France): French lensmaker Essilor said Monday there are decided buy Italy’s Luxottica, maker of Ray-Ban sunglasses, in a very bid to create a new global giant during the sector.
The news sent Essilor shares up by in excess of 14% around the Paris wall street game and Luxottica shares upo in excess of 13% in Milan.
The combined group will have market capitalisation of approximately 46.2 billion euros (US$49 billion), based upon both companies’ closing share prices on Friday.
Under the terms of the transaction, the family of Leonard Del Vecchio, Luxottica us president – who controls a stake of 62% via holding company Delfin – will give over his stake to Essilor, which can then launch a public bid to shop for the shares.
The combined group, to become generally known as EssilorLuxottica, should have annual sales greater than 15 billion euros and utilize a workforce of 140,000 worldwide.
Luxottica chief Del Vecchio will end up us president from the new company and Essilor head Hubert Sagnieres his deputy.
The boards of directors of both companies have approved the transaction.
The deal still must take advantage of the necessary regulatory approval, but is anticipated to get carried out in the other part of this coming year.
In addition to Ray-Ban, Luxottica owns the Oakley logo and generates annual sales of about nine billion euros. Essilor booked sales of just over 6.7 billion euros in 2015.
“Finally, two items which are naturally complementary, namely frames and lenses, might be designed, manufactured and distributed in the same roof,” said Del Vecchio.
“With this agreement my dream to establish a major global player while in the eyewear industry, fully integrated and excellent in any its parts, comes finally true.”
Essilor’s Sagnieres said: “Our project has one simple motivation: to improved respond to the requirements a tremendous global population in vision correction and vision protection.