Luxottica Group to Enter South American Market

Luxottica Group to Enter South American Market
May 28, 2009

Milan, Italy-based Luxottica Group S.p.A., a designer, manufacturer and distributor of fashion, luxury and sports eyewear, has entered into an agreement to acquire a 40 percent stake in Multiopticas Internacional S.L., a company that currently owns more than 390 eyewear stores operating under the GMO, Econoptics and SunPlanet retail brands in Chile, Peru, Ecuador and Colombia. The transaction, which is worth approximately 40 million Euro, marks Luxottica's entry into the retail business in South America, a region with excellent growth potential and where Luxottica already has a solid presence through its wholesale network. Under the terms of the agreement, which is expected to close by the end of June, Luxottica will have a call option for the remaining 60 percent of Multiopticas Internacional. The call option will be exercisable by Luxottica between 2012 and 2014 at a price to be determined on the basis of Multiopticas' sales and EBITDA values at the time of the exercise. Multiopticas currently operates 193 stores in Chile, 100 in Peru, 39 in Ecuador and 61 in Colombia, and expects to open an additional 90 stores in the region in 2009.