RayBan maker Luxottica to acquire Oakley for $ 2.1 billion

27 June 2007

Luxottica Group SpA, the world''s biggest eyewear company that makes RayBan sunglasses, is acquiring trendy US sunglass brand Oakley Inc for $2.1 billion.

Milan-based buyer Luxottica, which operates the LensCrafters and Pearle Vision chains in the US , said it will offer $29.30 per share, a 16 per premium to Oakley''s $25.23 closing June 20 share price on the New York Stock Exchange.

"This is a milestone for our group," Leonardo Del Vecchio, Luxottica''s chairman, said in a statement. "Significant changes in market dynamics require industry leaders to perfect a mix of best-in-class products and marketing with technical and operational activities."

The deal fits into Luxottica''s strategy of acquiring both brands and sales outlets as it seeks to dominate all facets of eyewear design, manufacturing and distribution.

Luxotica''s foreign expansion began in 1981, when it created a German subsidiary called Fashion Brillen GmbH. Luxottica has a portfolio of 27 brands and does business in 130 countries on five continents.

Foothill, Calif.-based Oakley''s CEO Scott Olivet and president Colin Baden will take unspecified management roles at Luxottica. There was no announcement regarding any role for Jim Jannard, Oakley''s founder, chairman and chief mad scientist.