Luxottica acquires French rival Alain Mikli

Luxottica Group has just announced an exclusivity agreement to acquire 100 percent of the French luxury contemporary eyewear player Alain Mikli International. Luxotiica has teamed up with NEO Capital, a London based investment

firm specialised in the building of luxury brands.

“This proposed operation perfectly reflects our long-term growth strategy”, commented Andrea Guerra, Chief Executive Officer of Luxottica. "With its innovative design, Alain Mikli would enrich our luxury eyewear segment and further strengthens our prescription soul, where we have deeply invested in the past years, to further contribute to the Group’s resilient growth. Moreover, Luxottica’s vertically integrated business model and deep know-how of luxury eyewear distribution would allow Alain Mikli to increase its selected global presence”.

As a result of the acquisition, Luxottica would significantly strengthen its luxury brand portfolio. David Belhassen, founder of NEO, commented the operation, remarking that “Alain Mikli is a true, successful luxury brand and I am pleased that the brand is to be part of such a great group as Luxottica”.

The contemplated acquisition remains subject to discussion and to the completion of the consultation process with Works Council of Alain Mikli.

“I’m very excited about this new adventure”, commented Mr. Alain Mikli. “I have worked for 35 years pursuing the same idea and the same dream: to please our clients. Working with Luxottica will represent a great new opportunity to push the Alain Mikli brand to the next level in distribution, quality and service. Now I can share my passion with many customers around the world”.

Luxottica has been looking at several acquisitions. Chief Executive Andrea Guerra said last week that the company is also looking to buy Salmoiraghi & Vigano, an Italian eyewear retail group.

The Italian eyewear group posted a third-quarter net profit of 138.6 million euros last week, up 24.6 percent compared with the previous year. Sales were up 17 percent at EUR1.78 billion. Meanwhile, Alain Mikli, created in 1978 in Paris, in 2011, Alain Mikli posted net sales of approximately 60 million euros.

Shares of Luxottica Group SpA traded up 1.67 percent during mid-day trading on Thursday, hitting 29.84 euros per share. According to ‘Jags Report’, Luxottica Group SpA has a one year low of 19.6 euros and a one year high of 29.76. The company holds a current market cap of 13.891 billion euros.