De Rigo signs deal for Prada eyewear

The deal will see Prada eyewear, which will be aimed at the luxury market, available to UK practitioners from November this year. Few details of the agreement are available yet, but it is understood that a new company will be established to develop the range, with the Italian De Rigo group holding 51 per cent and Prada, 49 per cent of the shares. The Prada eyewear collection will be available worldwide. In addition, and subject to the fulfilment of certain pre-agreed conditions, the deal allows for Prada to acquire up to 15 per cent of the De Rigo group's outstanding share capital from controlling shareholders in two years' time. When this takes place, Prada will become the second largest shareholder in De Rigo, after the De Rigo family. The deal to establish a Prada eyewear range has been pursued by De Rigo since 1997. 'When we discuss brands worldwide there are five major names,' said Maurizio Dessolis, De Rigo's chief financial officer. 'Prada is one of those five, along with Armani, Louis Vuitton, Calvin Klein, and Gucci, so we are delighted to have completed this agreement.' De Rigo bought Dollond & Aitchison at the end of last year for around &\#163;50m (optician, News, December 11). The De Rigo group reported sales of &\#163;76m and net profits of &\#163;7m in 1997.