Luxottitica Buys Oakley
MILAN, Italy – Oakleys founder, Jim Jannard, who still owned 64.1 % of the shares, has sold his company to Luxottica. The largest eye-wear company in the world paid 24% above the average stock market price of Oakley over the last three months.
MILAN, Italy – Oakley’s founder, Jim Jannard, who still owned 64.1 % of the shares, has sold his company to Luxottica. The largest eye-wear company in the world paid 24% above the average stock market price of Oakley over the last three months.
The shareholders of Oakley and anti-trust authorities must still approve the transaction, but Luxottica officials expect no problems. The price being paid for Oakley may be regarded as high by certain standards, but investors have considered it as fair. Oakley is still expected to achieve better profits and sales of about US$ 930 million this year.
With Oakley contributing its expertise in performance sports, sun lens technology and active lifestyle design, the new group will have a very strong portfolio of premium licensed and company-owned brands and a network of more than 6,000 stores worldwide. Luxottica manager Andrea Guerra stressed that there will be no integration of Oakley, but rather a combination of two different organizations that will generate new business ideas and add “diversity, power and energy” to Luxottica’s overall business.
Oakley will run as an independent entity and handling two of Luxottica’s sunglass brands, Arnette and Revo, which will be part of a new sports eyewear segment of the enlarged group. Some of Luxottica’s licensed brands will also be able to benefit from Oakley’s superiority in the sports segment and from its 600-odd patents for some of their more youth oriented lines.
Oakley will gain a much stronger distribution platform to help broaden its presence beyond North America and three-five European markets where it performs well, including France and Germany. Giuseppe Servidori, who worked previously for Luxottica is the new manager for Oakley Europe.