Oakley to merge with Luxottica

Tina Milton

Print Article E-Mail Article E-Mail Author

Luxottica Group will acquire the outstanding shares of Oakley, with options and other equity rights

Sports performance optics business Oakley is to merge with eyewear company Luxottica Group after entering into a definitive agreement with the unanimous approval of both companies’ board of directors. Under the deal Luxottica will acquire the outstanding shares of Oakley for a cash purchase price of $29.30 per share, together with all outstanding options and other equity rights at the same price per share less the exercise price. The total purchase price will be about $2.1bn.

Luxottica Group chairman Leonardo del Vecchio said: “This is a milestone for our group. Significant changes in market dynamics require industry leaders to perfect a mix of best-in-class products and marketing with technical and operational capabilities. Luxottica has long admired the Oakley business and corporate culture, inspired by founder Jim Jannard. Oakley and Luxottica share a mutual commitment to quality, innovation and technical skills – qualities that will help us to solidify Oakley’s brand position and Luxottica’s strong leadership in the market. I look forward to welcoming the talented Oakley management team, led by Scott Olivet and Colin Baden, to our group.”

The transaction is expected to close in the second half of 2007 and is subject to the approval of Oakley’s shareholders and the satisfaction of other customary conditions.