Luxottica to acquire China's Modern Sight Optics

Luxottica Group has announced that it is to acquire China’s optical chain Modern Sight Optics, which has 28 stores in Shanghai.

Luxottica will acquire 100 per cent of the equity interest in Modern Sight Optics for a total consideration of RMB140m (€14m) or twice the expected sales for the fiscal year 2006.

Chairman of the Luxottica Group, Leonardo Del Vecchio, said: ‘Today’s acquisition is extremely important for our Group as it further extends our coverage of all most important markets in China for fashion and luxury goods to the key Shanghai market.

‘Shanghai has established itself as the reference market for fashion and lifestyle within China. Modern Sight Optics,  with its existing focus on the highest end of the market, provides an ideal platform to further develop our presence in the most dynamic retail market in the country.’

Luxottica now has 290 stores in Greater China with 28 in Shanghai, 75 in Beijing, 54 in Hong Kong and 133 in the Guangdong province. It bought  the Xueliang Optical chain last year (News, July 8 2005).

The international eyewear firm has also announced a five-year franchising agreement with retail company Azal Group for the introduction of 50 Sunglass Hut stores in the Middle East.

It said that the new stores would mainly be in the United Arab Emirates and Saudi Arabia, carrying Luxottica-only brand sunglasses from Bvlgari to Ray-Ban. Sunglass Hut is already the largest sun speciality retailer in the world with 1,806 stores in North America, Asia-Pacific and Europe.

Azal Group carries a portfolio of over 30 brands, with operations in the Middle East and Europe.