Luxottica buys Oakley for 2.1 billion dollars
Belluno-based eyewear producer Luxottica has acquired the US company Oakley, one of the world's leading brands in the sports and lifestyle segment, for 2.1 billion dollars. 
It was announced in a joint statement by the two groups. According to the agreement signed by the two companies, Luxottica will buy all Oakley's outstanding shares for 29.30 dollars per share in cash together with all the outstanding options at the same price decreased by the exercise price, for a value of around 2.1 billion dollars: this figure represents a premium over the 30- and 90-day average trading price of 18% and 24%, respectively. Oakley's Board of Directors fully supports the operation and will recommend its shareholders to approve the offer. The transaction is expected to close in the second half of 2007.
Luxottica president Leonardo Del Vecchio explained in the note that the transaction signed with Oakley ''represents an essential step ahead in the history of our group'' also in the light of current changes in the eyewear market.
''Luxottica' he added, 'has long admired the Oakley business and culture. Oakley and Luxottica share a constant commitment to quality, innovation and technical skills: elements that will once again help to strengthen Oakley's brand positioning and Luxottica's strong leadership of the market''.
The joint announcement underscored that the positive effects of the agreement will be the possibility of using Oakley's experience and expertise in the sports segment; the opportunity to create new product categories; new economies of scale with regard to supplies and distribution, and about 100 million euros a year in operational synergies are expected over the next three years. Luxottica's offer, the announcement concluded, will be financed in part by company cash-flow, by available bank lines and with new medium-long term funding available at closing. In 2007, Luxottica expects a pro-forma between the net financial position and EBITDA of around 2.3.
(Source: ANSA)
