Luxottica Group S.p.A. and Versace Group jointly announced the signing of a worldwide license agreement for the design, production and distribution of Versace, Versus and Versace Sport sunglasses and prescription frames.
The initial ten-year agreement is renewable for an additional ten years. The new collections will be launched in March of this year.
The transaction was completed through the purchase of IC Optics, an Italian-based company that produces and distributes eyewear. Prior to this transaction, Gianni Versace S.p.A. and Italocremona S.p.A. held IC Optics through a 50/50 joint venture.
Luxottica Group currently expects to generate approximately Euro 90 million from sales of Versace eyewear during the first 12 months of the agreement.
For fiscal year 2003, including sales of Versace eyewear for the period, the Group expects to post earnings per share (EPS) of Euro 0.77, or earnings per ADS (one ADS equals one ordinary share) (EPADS) of US$0.77, assuming parity in the Euro/U.S. Dollars exchange rate.
Leonardo Del Vecchio, chairman of Luxottica Group, said: “I am pleased that we reached an agreement with a brand as important as Versace. The long length of the agreement will allow us to invest in production and distribution as we would with an house brand.”
“Our plans for growth are not complete with this transaction. In fact, we are currently evaluating additional alternatives both on the retail and wholesale front.”
Donatella and Santo Versace, co-CEO’s of Versace Group, said: “Luxottica Group is the ideal partner for Versace. Their expertise in all areas of design, manufacturing and distribution of eyewear is second to none. Through this joint effort, we believe that the great potential of the Versace brand in the worldwide eyewear market will be fully realized.”
