This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration. Need a new registration confirmation email? Click here
May 23, 2011 /PRNewswire/ --
Luxottica Group S.p.A. (MTA: LUX; NYSE: LUX) today announced that it entered into an agreement pursuant to which Luxottica will exercise in advance, in
July 2011, its call option on 57% of Multiopticas Internacional S.L. share capital. Luxottica, which already owns a 40% stake in Multiopticas Internacional, is a global leader in the design, manufacturing and distribution of fashion, luxury and sports eyewear and Multiopticas Internacional is a company that currently owns over 470 eyewear stores operating under the Opticas GMO, Econopticas and
Sun Planet retail brands in
It was agreed to accelerate exercise of the call option included in the contract signed in 2009, by one year. Once the call option is exercised (which is worth approximately
95 million Euros), Luxottica will own 97% of Multiopticas Internacional's share capital.
Latin America represents a formidable driving force for both Luxottica Divisions," said
Andrea Guerra, Chief Executive Officer of Luxottica. "We expect to grow significantly in this key region, continuing on a trend of sustained development. Today's operation enables us to establish a meaningful position in retail in this region with an established network and a well-defined growth plan; on the other hand, it provides us with an opportunity to strengthen the positioning of our brands and Luxottica's business overall across the region."
Multiopticas Internacional is currently present in
South America with more than 470 stores, as follows: 221 in
Chile, 141 in
Peru, 40 in
Ecuador and 77 in
Colombia. In 2010 they posted total net sales exceeding
80 million Euros. Over the last four years, Compound Annual Growth Rate (CAGR) of net sales was more than 11%. It is expected that net sales for 2011 for the Multiopticas Internacional business could reach
95 million Euros.
Under the terms of the agreement, Luxottica will pay 70% of the exercise price, determined on the basis of Multiopticas Internacional's sales and EBITDA values, at the time of the exercise of the call option; the remaining 30% will be paid by the end of 2011.