Luxottica and the French Essilor convolano wedding. Birth of a colossus of the glasses, with aggregate revenues of over 15 billion euro 140 thousand employees and sales in more than 150 Countries. The agreement was announced this morning, Monday, January 16, before the opening of the markets. The agreement comes a group with a market capitalisation of 50 billion euro, of which Leonardo Del Vecchio, will be the largest shareholder, with 31-38%. The Old will be the executive chairman of the company, while the chief executive officer of Essilor, Hubert Sagniéres, will be the executive vice president. The company will be listed in Paris.
The Old: “The right solution”
“With this transaction, you realized my dream to give life to a sample in the field of optics, fully integrated and excellent in all its parts — has said Of the Old — . We knew from the time that this was the right solution, but only now have developed conditions that have made it possible. The marriage between two leading companies in their respective sectors will be of major benefit to the market, employees, and primarily for all our consumers. Finally, after fifty years of waiting, two parts, of course, complementary, frames and lenses, will be designed, implemented, and distributed under the same roof”.
Sagniéres: “Network-edge”
“our project is based on a motivation is simple: to respond better to the needs of a huge population of the world relating to the correction and to the protection of the view, merging two large companies, a dedicated lenses and frames — commented that from her singing Hubert Sagnières, chairman and ceo of Essilor —. With extraordinary success, the company has created brands, supported by a supply chain and a distribution network at the leading edge. Essilor port 168 years of innovation and industrial excellence in the design, manufacture and distribution of ophthalmic lenses and sunglasses. By combining their forces, these two international players can now accelerate their global expansion, to the benefit of customers, employees and shareholders, and of the entire industry.”
The industry of the glasses
The agreement is able to change the dynamics of the industry of the glasses, and a market of 90 billion euros, considered to be one of the sectors with stronger growth. According to analysts, the prospects for the industry are, in fact, “optimistic”, with the sector expected growth of over 2% until 2020. To push sales is the demographic change, especially in Asia. Of the 7.3 billion people in the world, 63 percent are in need of corrective lenses, but only 1.9 billion has already purchased glasses, lenses or undergoing surgeries. According to the estimates, are in need of glasses about 2.6 billion people, particularly in Asia, Africa and Latin America. Essilor and Luxottica had already assessed an agreement three years ago, when Sagnieres had contacted Luxottica. The negotiations, however, were not take to the skies between the scepticism of The Old one. Essilor since then has undergone a restructuring, which has become a society that is more consumer-oriented and, reports the Financial Times, the more “fit” to the company. Analysts believe that a merger between Essilor and Luxottica would have been positive, providing a succession plan for the group, given the 20 years difference in age between The Old and Sagnieres.
The synergies and the exchange ratio
A statement released in the morning by Essilor and Delfin-the company expects “synergies, significant integration, and stresses that “the two global players and complementary in the field of eyewear” will “to meet the growing needs of the vision care and consumer demand for high-end brands”. Combining Essilor and Luxottica, in fact, the new group “would be in a position to propose a complete offer, able to combine a strong portfolio of brands, distribution capacity global and the complementary expertise in ophthalmic lenses, optical frames and the sunglasses.
Delfin “irrevocably undertakes to make the own Luxottica shares to Essilor on the basis of an exchange ratio of 0,461 actions Essilor for 1 Luxottica”, you can still read on the note circulated by the two groups.
holding company
Essilor, Luxottica, said Sagniéres during a conference call, will become a holding company listed in Paris with a market capitalisation of around 50 billion euros. Will Essilor 100% and Luxottica group with a share between 62% and 100%, according to accessions to the Ops (public exchange Offer). Will the two operating companies independent . On the basis of the annual results of the 2015 of the two companies, the new group would have net revenues of more than 15 billion euros and a gross operating margin net income combined of about 3.5 billion. It is announced by a note that states that Delfin will be the first member with a share of between 31% and 38%. The Chairman of Luxottica, Leonardo Del Vecchio, will assume the position of executive chairman and chief aelegato of EssilorLuxottica. The President and ceo of Essilor, Hubert Sagniéres, would assume the position of executive vice president and chief executive officer of EssilorLuxottica, with the sam e powers of the executive chairman and chief executive officer. Of the Old and Sagnieres would maintain the respective offices of the president of the company and president and chief executive officer of Essilor.
January 16, 2017 (amending the January 16, 2017 | 08:32)
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