Essilor International SA signed its biggest deal to date for its US$1.73 billion purchase of PPG Industries' Transitions Optical stake. The deal involving PPG's 51% stake is set to add to company profits the first year Transitions Optical is integrated, stated Essilor earlier today.
Florida-based Transitions Optical, which boasts a US$814 million sales income for 2012, manufactures polarizing lenses that block harmful UV rays and adapats to changing light. Essilor International, which is headquartered in Charenton-le-Pont, France, specialises in producing and marketing opthalmic lenses and other opthalmic optical equipment and is currently the world's largest maker of eyeglass lenses.
The takeover also includes Italian sun lenses maker Intercast, shared Essilor. The purchase will be wholly financed by Essilor's medium-term financing and various cash resources.
"Essilor has now the sole leadership in the photochromic market, which is highly profitable and is enjoying higher growth rates than other segments of the global optical market," wrote Bryan Garnier & Co. analyst Cedric Rossi in a note to clients today.
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