Actively pursuing its growth strategy, Essilor International has announced the signing of nine additional external growth transactions representing combined annual revenue of around €60 million.
These acquisitions are in line with the Company’s strategy of balanced growth that is evenly spread across developed and fast-growing markets, with the aim of strengthening Essilor’s presence in the prescription lens industry and stepping up growth momentum in the online and sunglasses segments.
In developed markets, the Company completed three transactions that strengthen its ties with eyecare professionals and advance its multi-network strategy.
In the United States, Essilor purchased a majority stake in The Professional Eyecare Resource Co- Operative/Infinity Vision Alliance (PERC/IVA), a group purchasing organization comprising more than 2,400 independent eye care practices. Essilor also finalized the acquisition of Vision Source, the leading service network providing services to independent optometrists, which was originally announced in July 2015.
In Spain, the Company acquired a majority stake in ECP, the distribution platform of CECOP, a group purchasing organization comprising around 800 domestic optical stores as well as operations in Italy, Portugal and the United Kingdom. ECP posted revenue of almost €3 million in 2015. It will develop the Kodak® brand in Spain and Portugal, expanding the Company’s local offering and conquering fresh customer segments.
In Poland, Essilor enhanced its mid-range ophthalmic lens offering with the purchase of Jai Kudo. Also present in the Czech Republic and Slovakia, Jai Kudo generates annual revenue of around €5 million.
In fast-growing markets, six new transactions have helped Essilor broaden its geographical reach to better serve unmet vision care needs.
The Company closed four transactions in Brazil, where it bolstered its footprint in the prescription lens segment by signing partnerships with Prime Optical, a major prescription laboratory in Rio de Janeiro – the country’s third most populous state – with annual revenue of BRL 49 million, and RX, a
prescription laboratory in Pernambuco state, where the Company did not yet have an operational presence, with annual revenue of around BRL 8 million.
In addition, Essilor is stepping up its fast-growth strategy in online sales with the acquisition of two leading companies in the Brazilian market: eÓtica, one of the country’s leading online vendors of optical products (contact lenses, sunglasses and prescription glasses), and e-lens, a major online contact lens distributor. Based in Sao Paulo, eÓtica and e-lens generated revenue of around BRL 15 million and BRL 12 million respectively in 2015.
In Russia, the Company purchased Optic Club, a contact lens distributor with revenue of around RUB 1.6 billion in 2015 (around €20 million at end-December 2015 exchange rates). Optic Club’s product offering and regional footprint will tie in well with Company Grand Vision, the distributor of ophthalmic lenses and contact lenses acquired in 2014. Optic Club will boost Essilor’s market positioning in a country whose 145 million population has major unmet visual correction needs.
Lastly, in Kuwait, Nikon-Essilor has acquired a majority stake in Nikon Optical Middle-East (NOME), which generates revenue of €3.5 million and is the exclusive distributor of Nikon brand lenses in the Gulf Cooperation Council states. This partnership marks Essilor’s entry into Kuwait.
The Company closed a total of 19 acquisitions in 2015 representing aggregate additional annual revenue of around €214 million, thereby strengthening its position across all its operating segments (Prescription Lenses, Sunwear and Online).