Essilor buying Italy's Luxottica – Ray-Ban to go to French company

The French producer of contact lenses Essilor has contracted the purchase of the Italian company Luxottica, producer of Ray-Ban sunglasses, with the aim of creating a new global giant in the sector. The combined group will have market capitalization of around EUR 46.2 billion, based on the prices of the companies' shares at the closing of the stock exchanges on Friday.

According to the agreement, the family of Leonardo Del Vecchio, chairman of Luxottica, which controls 62% of the company's ownership through the holding company Delphin, will sell its share to Essilor, which will then organize a public invitation for the purchase of remaining shares.

The combined group will operate under the name of Essilor Luxottica, have annual sales higher than EUR 15 billion and employ around 140,000 people worldwide.

Del Vecchio will become CEO of the new company, and CEO of Essilor, Hubert Sagnieres will be his deputy. The transaction has been approved by the boards of directors of both companies. The authorization by regulatory authorities is still needed and it is expected that it will all be completed in the second half of 2017.

In addition to Ray-Ban glasses, Luxottica owns the Oakley brand and generates annual revenues of around EUR 9 billion. Essilor's sales in 2015 amounted to slightly above EUR 6.7 billion.

Essilor International Créteil

Luxottica Milan

Essilor

Luxottica

Ray Ban

production of contact lenses

production of glasses

sunglasses

Leonardo Del Vecchio

Oakley

holding company Delphin

Essilor Luxottica

Hubert Sagnieres

contact lenses