EssilorLuxottica to Acquire GrandVision N.V., as Planned; Q2 Results Strong

EssilorLuxottica has reached an agreement with Hal Optical Investments B.V.(HAL), a wholly-owned subsidiary of HAL Holding N.V, for the sale of HAL’s 76.72% ownership interest in GrandVision N.V., an optical retailer with 7,200 locations around the globe. Earlier this month, the company announced it was “in talks” with HAL about the acquisition. Reuters has reported to deal to be up to $8 billion.
EssilorLuxottica will buy HAL’s shares for a price of euro 28 per share, to be increased by 1.5% to Euro 28.42 if closing of the transaction does not occur within 12 months from the announcement date.
The Transaction is expected to close in 12 to 24 months. After the transaction, EssilorLuxottica will launch a mandatory cash public offer for all outstanding shares in the company, in accordance with the applicable Dutch public offer rules.
Read the full announcement here.
EssilorLuxottica currently operates over 10,000 stores and several proprietary online platforms with a strong presence in the Americas. GrandVision operates more than 7,200 optical stores and online platforms in more than 40 different countries with a strong presence in Europe and Latin America. In the U.S., its retail brands include For Eyes.
“With GrandVision we will be able to develop our retail network, finally extended throughout the geographies, and fully enable our multichannel and digital platforms, says Leonardo Del Vecchio, executive chairman of EssilorLuxottica. “ We will raise the quality of in-store experience for products, brands, and services for the benefit of all consumers and our wholesale customers.”
In the planned combined company, the GrandVision organization will operate EssilorLuxottica’s ophthalmic retail activities in Europe, the Middle East and Africa, while the current EssilorLuxottica organization will operate the retail networks in Latin America and North America.
After closing of the transaction and the mandatory public offer, EssilorLuxottica intends to terminate GrandVision’s listing on Euronext Amsterdam and to acquire 100% of the shares of GrandVision pursuant to statutory buy-out proceedings or to obtain full ownership of GrandVision’s business through other second-step transactions. GrandVision has agreed that the Management Board and Supervisory Board will reasonably consider any reasonable proposals for such post-closing second-step transactions.
Q2 Financial Report is Strong
EssilorLuxottica also released its second-quarter financial report (read it here), which indicates a growth of revenue and an acceleration of the integration process.
EssilorLuxottica reported revenue of euro 8,776 million, up 7.3% at current exchange rates and up 3.9% at constant exchange rates, compared to first-half 2018 pro forma revenue.
Lenses & Optical Instruments and Sunglasses & Readers delivered revenue growth of 4.9% and 8.4% respectively. Retail is up 3.6% at constant exchange rates, decelerating in the second quarter, due to both Sears difficulties and the unseasonal weather in May and early June.
Significant announcements include:
  • The acquisition of GrandVision N.V.
  • The planned acquisition of Barberini (pre-closing approvals have been met)
  • Renewal of the Bulgari license agreement
—Susan Tarrant