Italian eyewear giant Luxottica has acquired the American sports and lifestyle accessory maker Oakley for $2.1 billion, a joint statement from the companies announced on Thursday.
The accord calls for Luxottica to pay $29.30 per share, together with the purchase of all outstanding options and other equity rights at the same price per share minus the exercise price.
This represents a premium of 18% over the share's 30-day average trading price and approximately 24% over the three-month average trading price.
Oakley's board of directors said it will recommend that shareholder accept the offer.
In the joint statement, Luxottica Chairman Leonardo Del Vecchio explained that "this is a milestone for our group. Luxottica has long admired the Oakley business and corporate culture and Oakley and Luxottica share a mutual commitment to quality, innovation, and technical skills".
"These qualities will help us to consolidate Oakley s brand position and Luxottica s strong leadership in the market," he added.
Oakley founder and Chairman Jim Jannard replied "I am very excited that we have found a way to join forces. Oakley s technology and performance is one of the world s best kept secrets and this partnership should empower our ability to tell our story throughout the world".
"Oakley will continue to be Oakley but with much greater resources and a platform for realising the true potential of our brand and company," he added.
Luxottica will finance the acquisition from operating cash flow, available line of credit, and credit facilities to be available at the closing.
The operation is expected to be completed during the second half of the year.
Luxottica is the world's biggest eyewear producer with over 5,800 optical and sun retail stores in North America, Asia-Pacific, China and Europe. It has a a strong brand portfolio which includes Ray-Ban as well as license brands Bulgari, Burberry, Chanel, Dolce & Gabbana, Donna Karan, Polo Ralph Lauren, Prada and Versace.
The group also manages leading retail brands such as LensCrafters and Pearle Vision in North America, OPSM and Laubman & Pank in Asia-Pacific, and Sunglass Hut globally.
Oakley is a global leader in sport performance optics including premium sunglasses, goggles, and prescription eyewear. The company's optics brand portfolio includes Dragon, Eye Safety Systems, Fox Racing, Mosley Tribes, Oliver Peoples, and Paul Smith Spectacles.
The company operates retail chains as well, including Bright Eyes, Oakley Stores, Sunglass Icon and The Optical Shop of Aspen. The company also offers a wide selection of Oakley-branded apparel, footwear, watches and accessories.
