EssilorLuxottica acquires most of GrandVision in $8 billion deal

The purchase price is equal to Euro 28 per share is to be increased by 1.5 per cent to Euro 28.42 if closing of the acquisition does not occur within 12 months from the announcement date, EssilorLuxotica stated in a release.

The deal marks a new milestone for EssilorLuxottica, which was formed last year from the merger of French lens maker Essilor and Italian eyewear group Luxottica, but which has been hit by disputes over who should run the group.

GrandVision, whose chains include Vision Express in Britain and For Eyes in the United States, would give EssilorLuxottica control of more than 7,000 outlets across the world where it already sells brands, including Varilux lenses and Ray-Ban sunglasses.

The transaction is supported by GrandVision's management board and supervisory board and EssilorLuxotica said it has irrevocable commitment from HAL to sell its shareholding to EssilorLuxottica.

After the closing of the transaction, EssilorLuxottica will launch a mandatory public offer for all outstanding GrandVision shares.

The combination, which further complements EssilorLuxottica’s scope of activities, will allow the company to deliver a superior eyecare and eyewear experience to more people globally.

The transaction is expected to close in 12 to 24 months, the company said,

GrandVision will benefit from EssilorLuxottica’s commitment to, and investment in, product innovation, supply chain, talent development and digital knowledge to foster a richer relationship with GrandVision’s more than 150 million consumers

Through the acquisition of GrandVision, EssilorLuxottica will expand its optical retail platform, primarily in Europe, by adding more than 7,200 stores globally, over 37,000 employees and Euro 3.7 billion in annual revenue.

The transaction is subject to various closing conditions, including regulatory approvals and mandatory consultation procedures.

"Following the creation of EssilorLuxottica, which I strongly pursued, the acquisition of GrandVision represents the realization of a vision that has guided my actions and the growth of Luxottica over all these years. With GrandVision we will be able to develop our retail network, finally extended throughout the geographies, and fully enable our multichannel and digital platforms. We will raise the quality of in-store experience for products, brands and services for the benefit of all consumers and our wholesale customers,” Leonardo Del Vecchio, executive chairman of EssilorLuxottica, stated.

“The future integration of GrandVision with EssilorLuxottica brings new opportunities to GrandVision’s business, its well-established retail banners, stores, employees and all our stakeholders. Furthermore, it will create a truly global eyecare and eyewear company that is ideally positioned to capture changing consumer needs and behaviors, and provide its customers with a high quality optical omni-channel customer experience. This transaction is expected to provide value to GrandVision’s shareholders, while allowing for the acceleration of GrandVision’s growth strategy through the expansion of our store network and online platforms,” Stephan Borchert, CEO of GrandVision, added.

But the deal is likely to face intense scrutiny by competition regulators. The European Union only approved the 48-billion-euro merger of Essilor and Luxottica after a long study.

GrandVision has stores in more than 40 countries across Europe, Asia, North America and Latin America, according to its website, and employs more than 37,000 staff. Its outlets attract more than 150 million customers each year, it says.

EssilorLuxottica’s current retail brands also include David Clulow opticians, Sunglass Hut and Spectacle Hut.