France-based Essilor International said it had planned to purchase sunglass maker Costa for USD270 million. This was according to a report published by Reuters.
Essilor is currently the world's biggest producer of opthalmic lenses. The company said the acquisition deal would help the company reach the growing market of prescription sun lens, said the report.
Costa is a company that produces premium sports sunglasses. It was previously known as A.T. Cross. According to the company's website, Costa was was founded in 1983 by some fishermen who felt the market needed high-quality sunglasses.
Under the terms of the deal, Costa shareholders would be receiving USD21.50 per ownership share. This was an 8% premium of its USD19.98 closing price on Thursday. Costa shareholders woth a combined 34% interest voted in favor of the transaction, according to the Reuters report.
The said deal would be financed from the cash reserves of Essilor. These would be added to its 2015 earnings. The company said Costa's revenue for the year 2013 was expected to reach USD100 million, the report said.
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