Essilor International would be purchasing sunglass maker Costa at the approximated price of USS270 million. Costa Inc is formerly known as AT Cross, is a firm that designs, assembles and markets sunglasses under the brand names of Costa and Native. French based Essilor manufactures and sells lenses and other opthalmic optical instrumentation.
Essilor would be paying USD21.50 per Costa share. this constitutes the closing price of the sunglass maker on the bourse last Thursday at USD19.98 per share and additional premium of 8%. The transaction is said to be exempt from a financing condition and would be financed through cash reserves of Essilor.
Under the agreement, Essilor would allow Costa to receive and review superior bids from other parties interested in the firm. Costa is based out of Lincoln, RI and if it opts to accept a superior unsolicited offer, then it would be required to pay a termination fee to Essilor worth USD8,9 million.
The deal is expected to be completed by early next year. The deal still needs to be approved by Costa shareholder.
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