Monday, January 16, 2017

Billion merger in eyewear industry, Essilor and Luxottica’s go together – FAZ – Frankfurter Allgemeine Zeitung

In the eyewear industry to break with a billion merger with new times. The world’s largest eyewear group Luxottica, which produces, among other things, the brand Ray-Ban and racks for luxury brands such as Armani, Chanel, or Prada, and the French lens specialist, Essilor, want to go together. This, the two companies announced on Monday in Milan and Paris.

Together, the two companies on a stock market value of around 50 billion euros. Luxottica founder Leonardo Del Vecchio, the almost 62 per cent of the shares, will contribute its stake in the new company. He gets like all the rest of the shareholders for each of his shares 0,461 Essilor title.

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The offer of the Luxottica share a rating with 47,07 EUR. On Monday morning, they climbed to last a good 8 percent to 53,80 Euro, Essilor increased by almost 14 percent to 116 euros. The Deal was excellent for both sides, said BNP Paribas Analyst Luca Sola. In addition, he solve a leadership problem in the case of Luxottica. The glasses manufacturer had worn in the past few years, a number of leaders and multiple leadership changes.

it is Planned that Luxottica founder Del Vecchio will head the merged company. Del Vecchio will also be the largest single shareholder. On the controlled by him and Holding a Dolphin, he will hold after the merger, between 31 and 38 percent of the shares in the new group. The Italians as Vice-chief to the side, Essilor CEO Hubert Sagnieres. They both get the same rights.

The new company will have annual revenues of more than € 15 billion and 140,000 employees in around 150 countries. The operating profit of both companies, was most recently a total of around 3.5 billion euros. The merger is expected to increase earnings in the medium term, 400 to 600 million Euro. In the long term the effects are likely to be higher.

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Luxottica and Essilor in front of the back to the front ranks in the luxury goods industry. Catherine Lim, an analyst at Bloomberg Intelligence, thinks that both companies complement each other perfectly. Especially since both companies had recently started in the area of the other. So Luxottica started, glasses. The Segment offers high margins and the demand is expected to grow in the face of an increasingly older population is constantly increasing. Essilor, in turn, had taken some Online glasses retailers.

Luxottica is the stock market currently just under 26 billion euros in value. Essilors market value had fallen in the past few months, mainly because of some of the problems in America by almost a fifth to € 22 billion – thanks to the current course development the company is currently about 25 billion euros in value.


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