Essilor will enter the ready-reader market after announcing it is to acquire US non-prescription reading glasses and frame manufacturer FGX International.
FGX's portfolio of brands includes Foster Grant and PolarEyes, while it also holds licences for brands such as Ironman and Levi Strauss Signature. In 2008 the company reported revenue of $256m generated mainly in the US and Canada.
The transaction is valued at approximately $565m which includes the repayment of FGX's net debt of about $100m and will be financed using Essilor's cash reserves and existing credit facilities.
Explaining the reasons for the acquisition, which is subject to regulatory approval and the affirmative vote of a majority of FGX's shareholders, Hubert Sagnières, Essilor's chief operating officer, disclosed that demand for non-prescription reading glasses was growing. 'In addition, the market fits well with our prescription lens business and is supported by favourable demographic trends,' he said.
Sagnières revealed that the acquisition would fit well with Essilor's strategy of 'procuring the resources needed to provide a quality offering that covers different eyewear market segments around the world'.
Alec Taylor, FGX chief executive officer, commented: 'This proposed merger is of major significance to FGX International. Essilor's global reach will be of considerable strategic value to market our products on a worldwide basis and will greatly enhance our competitive position. Essilor's global footprint will allow us to expand our presence in Europe, Asia and other parts of the world.'