French opthalmic-lens giant Essilor International plans to acquire FGX International Holdings, the Smithfield, RI-based owner of Foster Grant, Gargoyles, Ironman, Champion and Body Glove sunglasses
Under the terms of the merger, FGX International shareholders will receive $19.75 per share in cash for an aggregate value of approximately $565 million, including the assumption of $100 million in debt. FGXI was trading at $17.91 Wednesday morning before the deal was announced.
FGX International will be a stand-alone business unit of Essilor. FGX's headquarters will remain in Rhode Island and continue to maintain offices in San Luis Obispo, CA; Toronto, Canada; Stoke-on-Trent, England; New York, NY; Mexico City, Mexico; and Shenzhen, China. Alec Taylor will remain CEO of FGX International and FGX's management team will be unchanged.
“This acquisition is in line with Essilor's strategy of procuring the resources needed to provide a quality offering that covers different eyewear market segments around the world in order to meet a wide range of needs,” said Hubert Sagnieres, Essilor's chief operating officer and chief executive designate. “It also strengthens the company's business base and enhances its growth prospects.”
Taylor said, “Essilor's global footprint will allow us to expand our presence in Europe, Asia and other parts of the world, while continuing to focus on growing our North American sales in over-the-counter reading glasses and popular-priced sunglasses.”
FGX's brands include those listed above and the company also holds licenses to sell optical products under the Ironman, Levi Strauss Signature, C9 by Champion and Body Glove.
