Essilor Acquires Stylemark
FGX International, an Essilor US subsidiary, has completed the acquisition of all outstanding shares in Stylemark, one ofNorth America’s foremost designers and distributors of non-prescription reading glasses and sunglasses.
Based in Ormond Beach, Florida, Stylemark employs approximately 340 people and generates around $140 million in annual revenue in North America. Each year, it sells more than 30 million readers and sunglasses in nearly 30,000 retail outlets, mainly in the food, mass retail, drugstore and department store segments. It boasts a large portfolio of licensed brands, including Nine West®, Dockers®, Reebok®, Hello Kitty® and various Disney® properties.
The acquisition will enable FGX International to add new customers, consolidate the two companies’ business and enter the fast-growing department store segment. The expanded business will also enhance the efficiency of its supply chain.
The Stylemark acquisition is fully aligned with the strategy launched two years ago, with the purchase of FGX International, to extend Essilor’s offering of eye health solutions, particularly in the presbyopia segment. “There are 2.4 billion people in the world who need corrective eyewear but don’t wear any,” said Hubert Sagnières, CEO of Essilor. “By strengthening our positions in the non-prescription reading glass market, we are speeding our expansion in a fast-growing segment and giving ourselves additional means to develop a high-quality offering of affordable eyesight correction solutions for a wide range of people around the world. In addition, Stylemark’s expertise in sunglass frame distribution will enable Essilor to effectively meet growing demand for eye protection solutions.”
The transaction will be financed using Essilor’s existing credit facilities. Based on current estimates, it is expected to be neutral to earnings per share in 2012 and accretive starting in 2013.
