Italian eyewear-maker Luxottica Group S.p.A. has purchased sports performance optics company Oakley, Inc. for $2.1 billion, the companies reported in a joint press release Nov. 14. Oakley will now be a wholly owned subsidiary of Luxottica Group.
Together, the two are expected to post $8.3 billion in net revenues for 2007. Luxottica Group expects the transaction will result in approximately $146.3 million per year in operating synergies within three years, driven by revenue growth and efficiencies. The two companies were previously long-time partners.
“Joint teams from the two companies have been focusing for months on the business opportunities we have ahead, which will become operating plans by year-end,” said Andrea Guerra, Luxottica CEO.
“While we have tremendous work in front of us, our early integration planning efforts give us confidence that the value of this combination can, in fact, be realized,” said Scott Olivet, Oakley CEO.
The Luxottica Group has more than 5,900 worldwide retail outlets, a brand portfolio that includes Ray-Ban, and manages leading retail brands such as LensCrafters and Pearle Vision in North America.