Italian eyewear giant Luxottica is to buy Oakley for a total price of $2.1bn in a deal that has been recommended to Oakley shareholders by its board of directors.
As well as giving Luxottica capability in sports, technology, and optics, Luxottica said that it would save some E100m per year in operating synergies within three years.
Luxottica is acquiring all the outstanding shares of Oakley for $29.20 per share, representing a premium of 24 per cent over the most recent three-month average trading price.
Luxottica’s group chairman Leonardo Del Vecchio said of the milestone that ‘significant changes in market dynamics require industry leaders to perfect a mix of best-in-class products and marketing with technical and operational capabilities’.
‘Luxottica has long admired the Oakley business and corporate culture, inspired by founder Jim Jannard. Oakley and Luxottica share a mutual commitment to quality, innovation and technical skills - qualities which will help us to solidify Oakley’s brand position and Luxottica’s strong leadership in the market.’
He welcomed the Oakley management team led by Scott Olivet and Colin Baden to the group.
Oakley founder and chairman Jim Jannard commented: ‘I am very excited that we have found a way to join forces... I am encouraged by the fact that Luxottica’s management has come to understand the unique, rogue nature of Oakley in the eyewear industry and is committed to preserving it.’
He added that Oakley would continue to be Oakley but with much greater resources and a platform for realising the true potential of the brand and company. The Oakley statement highlighted the fact that the combined companies’ retail platform includes luxury, fashion, lifestyle and sports concepts.
Oakley last year bought luxury brand Oliver Peoples and retail chain The Optical Shop of Aspen.
The Luxottica transaction is expected to close in the second half of 2007.