Last Monday, PPG Industries Inc said that it has agreed to sell its controlling stake in Transitions Optical. PPG has a total of US$1.73 billion worth of stake in the company, which invented the modern variable-tint plastic lenses. Essilor International is the business partner of Transitions Optical.
PPG suspended its share buybacks program as the sale was still pending completion. The US-based firm said that it was seeking new opportunities for investments following the proceeds of the sale. However, it is now back to its goal of having to buy back its own shares valued between US$500 million to US$750 million.
Transitions Optical was the first optical firm to develop plastic photochromic lenses. Essilor holds 49% in the company as is currently the biggest global ophthalmic lenses manufacturer. The sale would aid Essilor on strengthening its expansion plans in the variable-tint lens industry. The said industry is growing twice as fast in the optical industry in Europe, Latin America and Asia as a whole. In 2012, Transitions Optical reached approximately US$800 million in 2012.
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