EssilorLuxottica To Acquire HAL’s 76.72% Interest In GrandVision

EssilorLuxottica intends to acquire full ownership in GrandVision to create a truly global eyecare and eyewear company

GrandVision, a global  leader in optical retail recently announced that EssilorLuxottica, a global leader in the design, manufacture and distribution of ophthalmic lenses, frames and sunglasses; and HAL Optical Investments, a wholly-owned subsidiary of HAL Holding, have reached an agreement for the sale of HAL’s 76.72% ownership interest in GrandVision (the “Block Trade Agreement”).

Under the Block Trade Agreement, EssilorLuxottica will buy HAL’s shares for a price of €28 per share, to be increased by 1.5% to €28.42 if closing of the Transaction does not occur within 12 months from the announcement date. GrandVision supports the Transaction under the terms of a support agreement with EssilorLuxottica.

Closing of the transaction between EssilorLuxottica and HAL is subject to various conditions, including obtaining anti-trust clearance. The transaction is expected to close in 12 to 24 months. After the transaction has been successfully concluded, EssilorLuxottica will launch a mandatory cash public offer
for all outstanding shares in the Company, in accordance with the
applicable Dutch public offer rules.

GrandVision

GrandVision’s Management Board and Supervisory Board are confident that a combination of the two businesses will allow GrandVision to accelerate the execution of its current strategy and will enhance the long-term sustainable business success and value potential of GrandVision to the benefit of the Company and its stakeholders. For EssilorLuxottica, the combination with GrandVision will serve as a catalyst to unlock the underlying
growth potential of the eyecare and eyewear industry. The activities of both companies are highly complementary.

GrandVision operates more than 7, 200 optical stores and online in over 40 different countries with a strong presence in Europe and Latin America. EssilorLuxottica currently operates over 10,000 stores and several proprietary online platforms with a strong presence in the Americas. GrandVision will bring over 37,000 employees and €3.7 billion in annual revenue to EssilorLuxottica,
growing the company’s reach and expanding its dialogue with end consumers. The combination with GrandVision will create an extended multichannel platform to seize future opportunities in retail and in consumer interaction on eyecare and eyewear products and services. Further complementing EssilorLuxottica’s scope of activities, while maintaining its open business model, the Transaction will also bring under the same roof GrandVision’s 125 years of experience and success in putting the customer at the center of its business.

EssilorLuxottica

Additionally, it will give EssilorLuxottica an opportunity to
strengthen its direct-to-consumer business, benefitting from GranndVision’s technologies, competencies and human capital that have made it a success. Expanding its retail operations, while maintaining strong wholesale distribution, EssilorLuxottica will
increase its capacity to drive consumer engagement more effectively, to raise the standard of in-store experience, resulting in more regular eye exams, up to date prescriptions and an increased availability of multiple tailored vision care products to meet all of their vision and style needs.

Stephan Borchert, CEO of GrandVision said : “The future integration of GrandVision with EssilorLuxottica brings new opportunities to GrandVision’s business, its well-established retail banners, stores, employees and all our stakeholders. Furthermore, it will create a truly global, eyecare and eyewear company that is ideally positioned to capture changing consumer needs and behaviors, and provide its customers with a high quality optical omni-channel customer experience.

This transaction is expected to provide value to GrandVision’s shareholders, while allowing for the acceleration of GrandVision’s growth strategy through the expansion of our store network and online platforms. EssilorLuxottica’s interest in joining forces with
GrandVision is a clear recognition of GrandVision’s successful strategy, our state-of-the-art retail platform and our people. We look forward to joining forces with EssilorLuxottica in what will be an exciting new chapter ahead.”

Leonardo Del Vecchio, Executive Chairman of EssilorLuxottica commented : “Following the creation of EssilorLuxottica, which I strongly pursued, the acquisition of GrandVision represents the realization of a vision that has guided my actions and the growth of Luxottica over all these years. With GrandVision we will be able to develop our retail network, finally extended throughout the geographies, and fully enable our multichannel and digital platforms. We will raise the quality of in-store experience for products, brands and services for the benefit of all consumers and our wholesale customers.”