Breaking News! Essilor Buys FGX International For $565 Million

FGX Int’l to be acquired by Essilor for $565M

FGX International Holdings Ltd., which designs reading glasses and sunglasses, said Wednesday that it has agreed to be purchased by Essilor International for about $465 million.

The two companies value the deal at approximately $565 million including FGX’s debt. FGX shareholders will receive $19.75 in cash for each share they own.

FGX CEO Alec Taylor said in a statement that the acquisition will allow FGX to broaden its presence in Europe, Asia and other overseas regions.

Essilor, based in France, sells glasses and contact lenses. Its brands include Varilux, Crizal, Definity and its namesake. The company plans to pay for the transaction with available cash and existing credit agreements.

FGX’s brands include FosterGrant, Magnivision, Solar Shield and Gargoyles. It will become a Essilor subsidiary once the deal closes, which is expected next year. A termination fee of approximately $18.3 million is in place if the acquisition falls through.

FGX will keep its headquarters in Smithfield, R.I., with Taylor remaining as CEO. The company’s stock finished Tuesday’s trading at $17.91.

Source:Businessweek

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