Luxottica Group S.p.A., the parent of Sunglass Hut, announced that it has entered into an agreement pursuant to which it will acquire Stanza and High Tech, two sunglass specialty retail chains totaling more than 70 stores in Mexico.
This transaction marks Luxottica's entry into the sun retail business in Mexico, a country where the Group already has a solid presence through its wholesale division. Over time, the stores will be rebranded under the Sunglass Hut brand, the largest sunglass specialty retailer in the world.
“These acquisitions are strategically important in two ways,” said Fabio d'Angelantonio, Luxottica Group's Executive Vice President, Sun & Luxury Retail. “First, they enable us to establish from day one a very meaningful position in sun retail in Mexico, a very dynamic and fast-growing market. Second, they provide us with an opportunity to strengthen the positioning of our brands and Luxottica's business overall.”
“Growth in emerging countries and, more generally speaking, in the so-called sun belt, is one of the key pillars for Sunglass Hut's development,” added d'Angelantonio. “This transaction demonstrates our commitment to making the best use of opportunities that arise across the globe.”
The transaction, which is expected to close by the end of the second quarter of 2011, involves a purchase price of approximately Euro 17 million.
The geographic footprint of the two chains in Mexico is complementary. Stanza retail chain operates approximately 40 sunglass retail locations in select department stores and airports in most key Mexican cities, including Mexico City and Playa del Carmen. High Tech retail chain operates approximately 30 sunglass retail locations in select department stores in Guadalajara, Monterrey and Merida under the High Tech, Euro Vision and Top Vision brands.
It is expected that the combined net sales of the two chains for 2011 could reach Euro 15 million.
