Eyeglass retail giant in $49 billion merger

Luxottica Group, the leading eyeglass retailer with multiple U.S. store banners, has entered into a deal that would create a global giant in the optical industry.



Luxottica, whose brands include LensCrafters, Sunglass Hut, Oliver Peoples, and Pearle Vision, will merge with lens-maker Essilor International of France in a deal valued at $49 billion. The merger brings together the industry’s largest manufacturer with its leading retailer.



The combined entity, to be called EssilorLuxottica, would be the largest player in the eyewear market, manufacturing lenses for prescription glasses and sunglasses, and frames. Luxottica founder Leonardo Del Vecchio will be the largest single shareholder in the combined company with about a 30% stake. He will also serve as executive chairman and CEO.



The new company would have combined annual revenues of more than $16 billion, 140,000 employees and sales in more than 150 countries.



"Finally, after fifty years, two products which are naturally complementary, namely frames and lenses, will be designed, manufactured and distributed under the same roof," Del Vecchio said in a statement.