Essilor finalizes the acquisition of Transitions Optical

  Essilor finalizes the acquisition of Transitions Optical

Business Wire

CHARENTON-LE-PONT, France -- April 1, 2014

Regulatory News:

Essilor International (Paris:EI) announces that it has finalized the
acquisition of PPG Industries’ 51% ownership stake in Transitions Optical, the
world’s leading provider of photochromic lenses to optical manufacturers, and
100% of the capital of Intercast, a manufacturer of premium sun lenses.

The transaction, announced on July 29, 2013, was approved without conditions
by competition authorities in Australia, Brazil, Germany, New Zealand,
Portugal, Spain, the United Kingdom and the United States.

Founded in 1990 and based in Pinellas Park, Florida (USA), Transitions Optical
reported sales of $844 million in 2013, of which $279 million with lens
manufacturers other than Essilor.

“The acquisition of Transitions is a significant and highly promising
transaction for Essilor,” commented Hubert Sagnières, Chairman and Chief
Executive Officer of Essilor. “We will give Transitions the resources it needs
to speed its growth and allow the Group to broaden its expansion in
photochromic lenses, both worldwide and in different market segments.”

The consideration for the transaction amounts to $1.73 billion at closing,
subject to customary post-closing adjustments, plus a deferred payment of $125
million over five years.

Transitions Optical and Intercast will be fully consolidated in Essilor’s
financial statements as from April 1^st, 2014.

According to Group estimates, the integration of Transitions Optical will have
a positive impact on Essilor’s financial indicators, notably with:

  *An increase in the Group’s contribution margin^1 of around 150 bps as from
    year two of the integration.
  *An accretive effect on earnings per share as from 2014, representing at
    least 5% a year in subsequent years.
  *A positive impact of around 50 bps on the Group’s like-for-like growth in
    consolidated revenue as from year three of the integration.

About Essilor

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 more than €150 million to research and innovation every
year, in a commitment to continuously bring new, more effective products to
market. Essilor’s flagship brands are Varilux^®, Crizal^®, Definity^®,
Xperio^®, Optifog™, Foster Grant^®, Bolon^®, and Costa^®. It also develops and
markets equipment, instruments and services for eyecare professionals.

Essilor reported consolidated revenue of more than €5billion in 2013 and
employs more than 55,000 people. It operates in more than 100 countries with
28 plants, more than 450 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 Euro Stoxx 50 and CAC 40 indices.

Codes and symbols: ISIN: FR0000121667; Reuters: ESSI.PA; Bloomberg: EI:FP.

^1 Operating profit before compensation costs of share-based payments,
restructuring costs, other income and expense, and goodwill impairment, as a
percentage of revenue.

Contact:

Investor Relations and Financial Communication
Véronique Gillet – Sébastien Leroy – Ariel Bauer
Tel.: +33 (0)1 49 77 42 16
or
Corporate Communication
Lucia Dumas
or
Press Relations
Maïlis Thiercelin
Tel.: +33 (0)1 49 77 45 02
 
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