EssilorLuxottica is FINALLY a thing!
The beginning of October saw a momentous occasion in the global eyewear market: the merger of Essilor and Luxottica, the two biggest companies in glasses, finally went through! This was a deal 20 months in the making, and it is likely to reshape the entire industry: the resultant company (the somewhat unoriginally named EssilorLuxottica) will generate expected annual revenue in excess of 16 billion euros, and employ nearly 150,000 people around the world.
Luxottica’s share price has declined by 3% over the last week
SOURCE: Yahoo Finance
Between them, Essilor and Luxottica hold the reigns to the two biggest businesses in eyewear: Essilor’s specialism in lens crafting, and Luxottica’s expertise (and licenses) when it comes to frames. In merging, the companies will create an entity that is totally self-sufficient, and controls everything from the initial design to the final point of sale.
Luxottica’s founder, Leonardo Del Vecchio, will become executive chairman of the newly formed company. He made the following comment on the merger:
“We are at the beginning of a new chapter in our history in which we so strongly believe, bringing together frames and lenses under the same roof and completing our vertically integrated business model. We will enhance the excellences of Luxottica and Essilor to improve the service level and offer consumers around the world ever better products that leverage on our most beloved brands with cutting-edge lens technologies. We will expand our offer and foster the development of our customers’ business and the entire industry.”
Hubert Sagnieres, Essilor’s CEO and executive vice chairman of EssilorLuxottica, added: “Our commitment to foster innovation, enhance customer service and re-imagine the consumer experience will benefit all stakeholders. Moreover, the company’s mission will be strengthened by active and growing employee ownership, which is set to play a central role in the EssilorLuxottica governance model.”
Dominion holds Luxottica in its Global Trends Luxury Fund.
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