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Essilor eyes a deal with GrandVision
Posted on Thursday, 18 July 2019 12:58
France-based EssilorLuxottica is in talks to acquire a 76.7 per cent stake in Dutch optical retailer GrandVision from HAL Holding. The proposed offer of EUR 28.00 per share would represent a premium of 33.2 per cent to GrandVision’s close of EUR 21.02 on 16th July, the last trading day prior to the announcement. Bloomberg was the first to report on a potential sale and noted that HAL’s stake could be worth around USD 6.20 billion based on the purchase price. Following the news of a possible takeover, GrandVision’s shares closed up at EUR 21.22 yesterday, valuing the company at EUR 5.35 billion. However, GrandVision stated that it is not certain whether a deal with Essilor will take place and further announcements will be made if and when required. That said, the company noted any transaction would remain subject to customary conditions and approval from the relevant regulatory authorities and could take between 12 and 24 months to complete. Should a possible sale occur, Essilor will make a mandatory public offer for all the shares in GrandVision. Headquartered in Schiphol, the target is billed as a global leader in optical retailing, providing affordable frames, sunglasses and contact lenses for customers. It has 7,095 stores and an online presence across 40 countries worldwide and includes glasses brands such as D by D, Enzzo, Fuzion and Play!. GrandVision generated revenue of EUR 974.00 million for the quarter ended 31st March 2019, up from EUR 913.00 million in the corresponding period of 2019. Within the same timeframe, the group also booked earnings before interest, taxes, depreciation and amortisation of EUR 231.00 million (Q1 2018: EUR 136.00 million). Zephyr, the M&A database published by Bureau van Dijk, shows there have been just 36 deals targeting optical goods stores providers announced worldwide since the beginning of 2018. By far and away the largest of these involved West Street Capital Partners VII LP, a fund managed by Goldman Sachs, agreeing to buy US-based Capital Vision Services for USD 2.70 billion in June. Other targets featured in this sector include Visionary Holdings, Doctorglasses Chain and Eyerim. © Zephus Ltd