Titans merger – Essilor and Luxottica

Essilor France’s world number one manufacturer of lenses and contact lenses and Italy’s Luxottica a leading frame manufacturer, has announced their merger. If the deal goes through later this year the new company will be called EssilorLuxottica and will sell not only lenses and frames around the world but also stocking its own optician’ shops such as Sunglass Hut and Lens Crafters in the US and Australia.

The leading varifocal lens brand Varilux is made by Essilor, who has 41 per cent share of the world market in prescription lenses. Luxottica owns its brands such Ray Ban, Oakley and also makes under license spectacle frames such as Armani, Bulgari, Chanel, Prada, Ralph Lauren, Versace and Burberry.

Hubert Sagnieres chief executive of Essilor and Leonardo Del Vecchio founder of Luxottica. On worldwide sales of  €6.7bn Essilor made operating profits of €1.2bn and Luxottica sales of €8.8bn a profit of €1.4bn and the merger could boost their profits even further.