EU: EssilorLuxottica agrees US$6.1B deal for rival GrandVision

EssilorLuxottica has agreed to buy control of rival GrandVision in a €5.49 billion (US$6.1 billion) deal that would value the company at €7.1 billion (US$7.9 billion) will underline the Franco-Italian group’s dominance as the world’s largest eyewear maker and retailer.

The deal will see EssilorLuxottica, which was created in a 2017 merger, expand its retail platform, primarily in Europe, by adding more than 7,200 stores globally, over 37,000 employees and €3.7 billion (US$4.1 billion) in annual revenue.

EssilorLuxottica announced an agreement on Wednesday, July 31, with HAL Optical Investments, the majority shareholder of retailer GrandVision, to buy HAL’s entire 76.72% stake at a cash price of €28 (US$31.3) a share.

The price rises 1.5% if the acquisition does not close within 12 months of the announcement date, the company stated. Leonardo Del Vecchio, executive chairman, said in a statement that “following the creation of EssilorLuxottica, which I strongly pursued, the acquisition of GrandVision represents the realisation of a vision that has guided my actions and growth of Luxottica over all these years.”