Luxottica to buy Shoppers Optical in Canada

Luxottica yesterday announced the acquisition of Shoppers Optical, a 74-store Canadian-based optical chain owned by King Optical Group Inc. After the closing of the transaction, Luxottica Group will manage a total of 268 optical stores in Canada.

Valerio Giacobbi, executive vice president of Luxottica Group for North American retail, commented: 'This acquisition, when completed, will allow us to accelerate our plans to improve coverage of the high potential US$1.4 billion Canadian optical retail sector. It will make our Group the leading operator of optical stores in the country and the only one with full national coverage'.

Shoppers Optical operates across eight of Canada's provinces. 26 of Shoppers Optical's stores are based in the province of Ontario, where nearly 40% of the Canadian population lives. 'One of the key benefits of this acquisition,' added Mr. Giacobbi, 'is that the profile of Shoppers Optical's customers is already extremely similar to that of our Pearle Vision retail brand. Subject to and following closing, we plan to convert all stores to the Pearle Vision brand, thus allowing us to more rapidly grow its coverage of the Canadian market while providing Canadian consumers with improved services and increased product selection. Pearle Vision', concluded Mr. Giacobbi, 'will become the leading national optical retail chain in Canada, with a total of 114 stores, and the vehicle for further growth for our Group in this market. In fact, its business model offers tremendous potential for profitable growth thanks to the strength of the Pearle Vision brand - historically the most recognized optical retail brand in the U.S., now to be extended into the Canadian market'.

Shoppers Optical's business model is highly synergetic with Luxottica Group's existing retail operations in Canada. Historically a strong business, it already enjoys full integration of systems supporting the sales, service and manufacturing processes. In addition, this acquisition will bring into the organization the first full-service Canada-based central lens finishing lab with anti-reflective coating capability, further strengthening the Group's ability to deliver the highest level of service to the Canadian market.

The closing of the transaction, which is subject to customary closing conditions, is expected to take place in June 2006.