Essilor and Luxottica have successfully combined to create EssilorLuxottica, bringing together two pioneering and complementary global players with pro forma combined revenues in excess of AU$25 billion, nearly 150,000 employees, and an unmatched global footprint. In a statement, the company said Essilor and Luxottica had joined forces around one common mission, “Help people see more, be more and live life to its fullest” by addressing their evolving vision needs and personal style aspirations.
Leonardo Del Vecchio, Executive Chairman of EssilorLuxottica said, “We are at the beginning of a new chapter in our history in which we so strongly believe, bringing together frames and lenses under the same roof and completing our vertically integrated business model. We will enhance the excellences of Luxottica and Essilor to improve the service level and offer consumers around the world ever better products that leverage on our most beloved brands with cutting-edge lens technologies. We will expand our offer and foster the development of our customers’ business and the entire industry.”
Hubert Sagnières, Executive Vice-Chairman of EssilorLuxottica added, “The creation of EssilorLuxottica is a defining moment in our fight to elevate the importance of good vision as both a basic human right and a key lever for global development. EssilorLuxottica now has the means to give this important cause a much stronger voice and is in a position to grow the entire eye care and eyewear industry thanks to its presence in all major segments, from lenses to frames to physical and online distribution. Our commitment to foster innovation, enhance customer service, and reimagine the consumer experience will benefit all stakeholders. Moreover, the company’s mission strengthened by active and growing employee ownership, is set to play a central role in the EssilorLuxottica governance model.”
SIGNIFICANT VALUE CREATION
Revenue synergies are expected in the $320-480 million range, as a result of EssilorLuxottica’s capacity to develop new and better products, optimise interaction between frames and lenses, and serve the industry better via a broader distribution reach and a more efficient logistics platform. Additionally, this will be achieved by accelerating emerging markets development, strengthening e-commerce businesses, increasing plano and prescription sunglasses penetration and fostering consumer engagement with regard to their vision correction and protection needs as well as their aspiration for a full brand experience. Cost synergies are expected to come in the range of $350–480 million from the combined supply chain optimisation, general and administrative expenses, and sourcing savings.
LEADERSHIP AND GOVERNANCE
Mr. Del Vecchio, Luxottica’s Executive Chairman, serves as EssilorLuxottica’s Executive Chairman. Mr. Sagnières, Chairman and CEO of Essilor, serves as EssilorLuxottica’s Executive Vice- Chairman with equal powers to those of the Executive Chairman.
Each keeps their respective positions as Executive Chairman of Luxottica and Chief Executive Officer of Essilor International SAS. Essilor International SAS and Luxottica maintain their respective Boards of Directors.