The Luxottica Group will acquire Ming Long Optical, the largest premium optical chain in the province of Guangdong, China. As a result, the Group becomes the leading operator of premium optical stores in China, with a total of 278 locations in two of the top three premium optical markets in Mainland China — Beijing and the Guangdong province — as well as in Hong Kong, the most important market in Asia for luxury goods.
Leonardo Del Vecchio, chairman of Luxottica Group, commented: “In our view, China is the next big market for fashion and premium eyewear, hence our desire to quickly build critical mass to be the leaders from the onset.”
“Today's acquisition firmly establishes our Group's leadership position in the premium segment in that market, nicely complementing the strength of our portfolio — especially in premium and fashion brands — and our Group's long-term experience in premium optical and sun retail in some of the world's most important eyewear markets. Next, our team on the ground will focus on consolidating our presence while creating the best premium optical retail model for the Chinese market.”
Luxottica Group will acquire 100 percent of the equity interest in Ming Long Group for a purchase price of RMB 290 million (approx. Euro 29 million). Ming Long Optical is expected to post sales for fiscal year 2005 of approx. RMB 115 million (approx. Euro 12 million).
Ming Long Optical brings to the Group 133 stores mainly in the Guangdong province. Luxottica Group recently announced the acquisition of Xueliang Optical in Beijing, now with 77 stores, it also already operates 68 stores in Hong Kong.
As customary, completion of the transaction remains subject to approval by the relevant Chinese governmental authorities. Luxottica Group currently anticipates receiving such approvals by Spring 2006.
