Essilor on Track to Achieve Revenue of €1.5Billion in Fast-Growing
Countries by 2015
*Now the Leading Distributor in Colombia and Turkey
*Growth Model Strengthened in China
*Two Transactions Completed in North Africa
CHARENTON-LE-PONT, France -- January 22, 2013
Pursuing its strategy in fast-growing countries, Essilor (Paris:EI) has
announced the creation of partnerships with local leaders in Colombia, Turkey
and China – all key markets in the Company’s development plan.
In Colombia, a country with 50million inhabitants where Essilor opened a
sales subsidiary approximately one year ago, the Company has signed an
agreement to acquire a 51% stake in Servi Optica, one of South America’s
largest prescription laboratories. An Essilor distributor, through the
Varilux^® and Shamir lenses in Colombia, Servi Optica is the market’s leading
distributor of ophthalmic lenses and generates revenue of around €29million.
Servi Optica will leverage the Company’s expertise and technological backing
to speed its development in this market, in which progressive and
anti-reflective lenses enjoy considerable growth potential and where over one
person out of three with vision impairment is in need of corrective eyewear.
Servi Optica will also serve as a launch pad for the Andean countries of Peru,
Venezuela, Ecuador and Bolivia, where Essilor does not yet operate. The
transaction is subject to approval by Colombian competition authorities.
In Turkey, the Company has signed an agreement to acquire a majority stake in
Isbir Optik, the market’s leading distributor of ophthalmic lenses with
full-year revenue of around €15million. Based in Ankara, Isbir has a large
number of sales offices and distributors throughout the country, as well as a
prescription laboratory equipped with digital surfacing and coating
technologies. The company distributes BBGR lenses under its own brand as well
as Nikon brand lenses.
With a population of 80million, Turkey is one of the fast-growing countries
in the Mediterranean basin. Following the partnerships created with Shamir,
which has a subsidiary in the country, and with Ipek Optik and Opak, this new
operation considerably strengthens Essilor’s multi-network strategy in this
market of 25million lenses, in which high-index, progressive and
variable-tint lenses and other value-added products represent an important
reservoir of growth. The partnership betweenIsbirandEssiloris subject to a
certain number of conditions precedent, including notifying Turkish
competition authoritiesaboutthe transaction. It should be completed in
In China, Essilor has strengthened its business model with the acquisition of
a majority stake in Tianhong, the market’s leading distributor of ophthalmic
lenses. Based in Dan Yang, Tianhong supplies corrective lenses featuring a
wide array of materials and designs to national and regional chains, most of
which are positioned in the mid-range segment and located in Tier 2 and Tier 3
cities. Tianhong generates around €19million in revenue, much of it from
products manufactured by Essilor Group companies.
The mid-range segment in China is still highly fragmented. Served by a large
number of producers that do not have direct access to opticians, the segment
creates differentiation more by consumer and distributor brands than by lens
performance features. The partnership with Tianhong strengthens the value
proposition of Essilor, which has emerged as a major driver of market
consolidation capable of meeting consumer demand for innovative solutions.
In the future Tianhong will be able to source high-quality products from a
greater number of partners within the Essilor Group in order to improve its
offer and strengthen its positions with Chinese opticians. Tianhong, for
example, will promote the offer of Seeworld, which recently opened a
prescription laboratory with high-technology equipment to capture the powerful
growth potential of custom-made lenses, which currently account for only 4% of
unit sales in China.
They will continue to distribute all brands to push value-added product,
including antireflective and mid-tier photohcromic lenses.
Essilor has also finalized two transactions in North Africa, another dynamic
region in the Mediterranean basin. In Tunisia, Essilor completed the
acquisition of Sivo, the market’s leading distributor, which also operates in
Morocco, Algeria, Côte d’Ivoire, Cameron and Togo and generates approximately
€7million in revenue.
In Morocco, Essilor completed the acquisition of Movisia, a distributor of
Nikon and Kodak brand lenses. With revenue of around €1million, Movisia
strengthens the local operations of the group created by L’N Optic, a
distributor of Varilux^® and Crizal^® lenses, and Optiben, which markets the
Commenting on these recent developments, Hubert Sagnières, Essilor’s Chairman
and Chief Executive Officer, said: “Essilor is continuing to deploy its
multi-network growth strategy in all its host countries, with the goal of
stepping up the pace of distribution for all Company brands. I also want to
acknowledge the launch in 2012 of operations in five countries^1 that confirms
Essilor’s goal of providing vision correction solutions for everyone. This
ability to forge partnerships with local industry leaders while continuing to
drive powerful organic growth has strengthened our objective of generating
full-year revenue of €1.5billion in fast-growing countries by 2015.”
In 2011, Essilor generated slightly more than €600million in revenue in
fast-growing countries, which corresponded to approximately 15% of total
sales. In third-quarter 2012, these countries represented approximately 18% of
The world’s leading ophthalmic optics company, Essilor designs, manufactures
and markets a wide range of lenses to improve and protect eyesight. Its
corporate mission is to enable everyone around the world to access lenses that
meet his or her unique vision requirements. To support this mission, the
Company allocates around €150 million to research and development every year,
in a commitment to continuously bring new, more effective products to market.
Essilor’s flagship brands are Varilux^®, Crizal^®, Definity^®, Xperio^®,
Optifog™ and Foster Grant^®. It also develops and markets equipment,
instruments and services for eyecare professionals.
Essilor reported consolidated revenue of €4.2 billion in 2011 and employs
around 48,700 people in some 100 countries. It operates 19 plants, a total of
390 prescription laboratories and edging facilities, as well as several
research and development centers around the world.
For more information, please visit www.essilor.com.
The Essilor share trades on the NYSE Euronext Paris market and is included in
the EuroStoxx 50 and CAC 40 indices. Codes and symbols: ISIN: FR0000121667;
Reuters: ESSI.PA; Bloomberg: EI:FP.
^1 Côte d’Ivoire, Laos, Sri Lanka, Togo and Tunisia
Investor Relations and Financial Communication
Véronique Gillet – Sébastien Leroy – Ariel Bauer, +33 (0)1 49 77 42 16
Maïlis Thiercelin, +33 (0)1 49 77 45 02
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