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Wednesday / June 29.
HomeminewsEssilor Buys Shamir Optical

Essilor Buys Shamir Optical

It’s now official. After a flurry of rumours circulated earlier this year Essilor International has announced that it will buy half of Shamir Optical.

Essilor announced last Friday (15 October) it will purchase 50 per cent of Israeli based Shamir Optical for USD$130 million and it will consolidate Shamir into it’s operations once the transaction is complete.

Essilor will purchase 37 per cent of the Shamir’s shares that are publicly held and the remaining 13 per cent from Kibbutz Shamir. The Kibbutz, which currently holds 63 per cent of the company’s stock, will retain 50 per cent ownership in Shamir.

The companies said the deal, which is expected to be finalised towards the middle of 2011, will provide new opportunities to collaborate and expand the range of “innovative, new value-added products and services and to expand our offer to eye care professionals around the world”.

Essilor announced… it will consolidate Shamir into it’s operations once the transaction is complete

In a number of press releases circulating since the announcement Essilor and Shamir Optical have been hailed as the “perfect partnership”.

According to reports, Amos Netzer chief executive officer of Shamir Optical industries said, “This venture places Shamir Optical in a position to accelerate the development of new products and to strengthen its presence in the market place by using Essilor’s R&D capabilities, notably in coatings, and its worldwide distribution network. The transaction will create synergies and provide Shamir Optical with additional resources to invest in its development.”

Hubert Sagnieres, chief executive officer of Essilor International, said, “This joint venture represents a strategic addition to Essilor’s business and will strengthen our offer to the mid-tier segment with additional high-quality products.

“Shamir Optical’s range of products fits closely with Essilor’s. Thanks to our existing network, respective expertise and the potential for vertical cost synergies, our partnership will allow us to grow the worldwide optical business with innovative, new value-added products and services and to expand our offer to eye care professionals around the world. Shamir Optical will continue to produce and promote its brands, products and services as a separate business entity.”

The merger agreement contains certain termination rights for both Essilor and Shamir Optical and further provides that, upon termination of the agreement under specified circumstances, Shamir Optical may be required to pay Essilor termination fees of USD$11 million.

All going well, once the agreement is finalised, Shamir Optical will be delisted from Nasdaq and Tel Aviv stock exchange. The Israeli management team will remain in place as will the management team of Shamir Optical.

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