Safilo Group announced the acquisition of a 70 percent stake in the equity of Blenders Eyewear LLC, a San Diego-based online seller of sunglasses.
Safilo Group purchased the stake from the company’s founding entrepreneur and full owner.
Founded in San Diego in 2012 by Chase Fisher, Blenders Eyewear has built an advanced e-commerce platform with unique digital and social media skills, which has achieved fast and profitable growth thanks to its digital capabilities. The company generates approximately 95 percent of its current business through its proprietary direct-to-consumer e-commerce platform, more recently complemented by the opening of the first Blenders flagship store in San Diego.
Blenders Eyewear’s products are inspired by the California active and progressive lifestyle and offer a compelling price-to-value eyewear proposition, particularly appealing to a broad range of consumers with a focus on Millennials and Generation Z, both female and male.
The brand, profitable since its inception and with strong current profitability, has fueled its rapid growth through highly effective social marketing strategies, partnering with influencers, athletes, lifestyle enthusiasts, and product collaborations which have driven sales and brand awareness.
In 2019 the company expects to reach profitable net sales of approximately U.S. $42 million, all generated in the United States and up around 40 percent compared to the previous year and with a three-year CAGR of 175 percent.
Angelo Trocchia, Safilo’s chief executive officer, said: “We are thrilled to welcome to Safilo an inspiring brand like Blenders Eyewear, a fast-growing e-commerce-powered business at the forefront of the latest direct to consumer and omni-channel capabilities, which will enrich our proprietary portfolio with new strong skills and a particular focus on our key US market. Blenders is a disruptive, digitally native business model, founded on the principle of providing high quality lifestyle and active eyewear, at affordable prices and with engaging brand content. A strong proposition rooted in a rapid expansion of brand awareness among its natural, fast growing customer audience of Millennials and Generation Z. Blenders is entrenched in today’s social sphere and is experiencing significant social media success.
“With Blenders, we aim to foster and accelerate our e-commerce and omni-channel strategy, leveraging on the digital DNA and proven capabilities of the brand and putting Safilo’s global capabilities at its disposal to enable global expansion of the brand.”
Chase Fisher, founder and CEO of Blenders Eyewear commented: “This marks a huge step forward for Blenders and we’re excited to be part of Safilo to reach a wider marketplace. Safilo’s product know-how and global distribution capabilities are the perfect complement to our digitally native business model, opening up worldwide expansion potential. We’re on a mission to build a thriving global community that inspires people to live in forward motion.”
Safilo acquired the 70 percent controlling interest in the Company, based on a total value on a cash-and debt free basis (Enterprise Value for 100 percent of the Company) equal to U.S. $90 million. The cash consideration to be paid at closing is subject to customary price adjustments. The closing of the transaction is subject to conditions precedent including some related to the activities of the Company.
Chase Fisher will retain full ownership of 30 percent of the shares and, pursuant to the share purchase agreement, these remaining equity interests are subject to customary reciprocal put and call options which can be exercised starting from 2023. Chase Fisher will remain CEO of Blenders Eyewear which will continue to run out of its San Diego home.
The acquisition will be financed through available cash and credit facilities, and through a loan provided by Safilo’s reference shareholder, Multibrands Italy B.V., controlled by HAL Holding N.V, for an amount of EUR 30 million which the company aims to draw for the closing of the transaction.
Safilo’s portfolio encompasses: own core brands Carrera, Polaroid, Smith, Safilo, Oxydo, and licensed brands: Dior, Dior Homme, Fendi, Banana Republic, BOSS, Elie Saab, Fossil, Givenchy, Havaianas, HUGO, Jimmy Choo, Juicy Couture, kate spade new york, Liz Claiborne, Love Moschino, Marc Jacobs, Max Mara, Max&Co., Moschino, Pierre Cardin, rag&bone, Rebecca Minkoff, Saks Fifth Avenue, Swatch, and Tommy Hilfiger.
Photo courtesy Safilo