♣ The Deal brings together two of the biggest forces in the eyewear industry: Essilor and Luxottica;
♣ Luxottica Group S.p.A. is the global leader in the design, manufacture and distribution of fashion, luxury and sports eyewear;
♣ Essilor International S.A. is the world’s leading ophthalmic optics company;
♣ Together, they will lead the eyewear market with a 27.2% market share ex-ante synergies, according to 2015 data;
♣ Essilor Luxottica would have more than 140,000 employees and sales in more than 150 countries;
♣ The rationale: better seize the strong market demand and address 2.5 billion people still suffering from uncorrected vision problems;
♣ The new OpCo will operate under the Holding EssilorLuxottica;
♣ Single largest Shareholder: …show more content…
CET, Essilor and Delfin announced the signing of an agreement designed to create an integrated player dedicated to visual health and superior consumer experience through a combination of Essilor [Euronext Paris: EI] and Luxottica Group [MTA: LUX; NYSE: LUX]. (Source: Essilor’s News Release – 16th January 2017)
♣ Revenue Synergies will arise from Market Growth Acceleration (i.e. online penetration, EM growth);
♣ Cost Synergies will arise from Supply Chain Optimization, and COGS/S,G&A costs reductions;
♣ Revenue and Cost Synergies are expected to have an EBIT impact ramping up to EUR 420 – 600mn per annum 3-4 years after closing;
♣ The value created for all EssilorLuxottica’s shareholders will range from EUR 3,576mn to EUR 6,417mn, depending on three case scenarios: Optimist, Conservative and Skeptical.
♣ The main risks that can freeze the transaction completion or destroy the value creation of the merger are: (probability of occurrence in brackets)
♣ Dis-synergies (Low)
♣ Cannibalization (Low)
♣ Antitrust Issues (Plausible)
♣ Governance Issues (Unlikely)
♣ Luxottica Group S.p.A. is the global leader in the design, manufacture and distribution of fashion, luxury and sports
♣ Luxottica Group S.p.A. is the global leader in the design, manufacture and distribution of fashion, luxury and sports eyewear;
♣ Essilor International S.A. is the world’s leading ophthalmic optics company;
♣ Together, they will lead the eyewear market with a 27.2% market share ex-ante synergies, according to 2015 data;
♣ Essilor Luxottica would have more than 140,000 employees and sales in more than 150 countries;
♣ The rationale: better seize the strong market demand and address 2.5 billion people still suffering from uncorrected vision problems;
♣ The new OpCo will operate under the Holding EssilorLuxottica;
♣ Single largest Shareholder: …show more content…
CET, Essilor and Delfin announced the signing of an agreement designed to create an integrated player dedicated to visual health and superior consumer experience through a combination of Essilor [Euronext Paris: EI] and Luxottica Group [MTA: LUX; NYSE: LUX]. (Source: Essilor’s News Release – 16th January 2017)
♣ Revenue Synergies will arise from Market Growth Acceleration (i.e. online penetration, EM growth);
♣ Cost Synergies will arise from Supply Chain Optimization, and COGS/S,G&A costs reductions;
♣ Revenue and Cost Synergies are expected to have an EBIT impact ramping up to EUR 420 – 600mn per annum 3-4 years after closing;
♣ The value created for all EssilorLuxottica’s shareholders will range from EUR 3,576mn to EUR 6,417mn, depending on three case scenarios: Optimist, Conservative and Skeptical.
♣ The main risks that can freeze the transaction completion or destroy the value creation of the merger are: (probability of occurrence in brackets)
♣ Dis-synergies (Low)
♣ Cannibalization (Low)
♣ Antitrust Issues (Plausible)
♣ Governance Issues (Unlikely)
♣ Luxottica Group S.p.A. is the global leader in the design, manufacture and distribution of fashion, luxury and sports