Essilor, a well-known lens brand, will spend $1.2 billion next year to acquire the global eyewear industry
Essilor, a well-known lens brand, will spend $1.2 billion next year to acquire the global eyewear industry
On November 4, Beijing time,
Bloomberg reports that global lens maker Essilor International could spend as much as €1 billion ($1.2 billion) on global acquisitions next year as it enters emerging markets to expand.
Hubert Sagnieres, chairman and CEO of Essilor, headquartered in Charenthong-le-Pont, France, said in an interview in Shanghai,
Essilor will focus on transactions in fast-growing markets such as China, India and Latin America.
He expects China to become the company's big market within five years.
Sagnieres said on October 31 that "we easily have 200 million euros available for investment.
At the same time, we have a number of potential trades while retaining the same rating or acceptable leverage. ”
He said that Essilor is considering cooperation and stake in similar companies around the world.
to achieve the target of 13% revenue growth this year.
Third-quarter revenue rose 14%, driven by deals such as the acquisition of Canadian online retailer CoastalContacts Inc. this year.
According to data compiled by Bloomberg, Essilor has invested about $2.6 billion in 17 acquisitions over the past three years.
The largest deal was the €1.73 billion acquisition of a controlling stake in its Transitions Optical joint venture.
Chinese market Sagnieres said in an Oct. 24 conference call,
Essilor is looking to acquire small businesses in Asia, Africa and the Middle East that sell sunglasses, manufacture lenses and have an online presence.
According to data compiled by Bloomberg, Asia, the Middle East and Africa accounted for 18% of Essilor's total revenue last year.
Latin America accounted for 7.8 per cent.
Speaking on the sidelines of CEIBS Advisory Board meetings, Sagnieres said,
In China, Essilor will acquire and partner with smaller retailers in cities other than Beijing, Shanghai and Guangzhou to increase revenue.
The company was fined earlier this year for violating China's anti-monopoly laws.
Last year, it invested in a sunglasses seller based in southern China.
Sagnieres said that China will be Essilor's second largest market next year.
Revenue in China is expected to grow organically at 20%-25% per annum.
He said that as the company expands its store distribution and online retail sales of contact lenses and prescription lens products,
China will replace the United States as its big market as early as five years.
"This is a big market for myopia, half of the world's myopia is in China," Sagnieres said, "and it's also a country with the most elderly people in the world."
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Essilor Universe Piece Essilor.