EssilorLuxottica has signed an agreement for an 80% stake in ophthalmic device manufacturer and distributor Heidelberg Engineering and to acquire the American streetwear brand Supreme for AU$2.2 billion.
Founded by Dr Gerhard Zinser and Mr Christoph Schoess in 1990, Heidelberg Engineering specialises in OCT devices, real-time image processing and analytics, large-scale data analysis and digital surgical navigation.
The Germany-based company – with a presence in over 100 countries – has been directly supporting Australian ophthalmologists and optometrists since 2013 through its local subsidiary in Melbourne.
In a statement, EssilorLuxottica said the agreement draws on the company’s long-standing expertise in the design and manufacture of advanced instruments and vision care solutions for eyecare professionals and represents a step forward in its strategy and med-tech journey.
As part of EssilorLuxottica, Heidelberg Engineering will continue to deliver the “same solutions and expertise their customers have come to expect”, while pursuing a “vision for creating a shared care system spanning from research to home monitoring”.
Mr Francesco Milleri, chairman and CEO, and Mr Paul du Saillant, deputy CEO at EssilorLuxottica said Heidelberg Engineering will bolster the company’s presence in the med-tech space.
“By harnessing the full spectrum of our group’s capabilities in the optical industry, from logistics to manufacturing to global distribution, we are dedicated to fostering their long-term growth while enhancing the doctor and patient experience.”
Heidelberg Engineering co-founder and managing director Schoess added that innovation and quality have been key drivers for the company since he and Dr Zinser founded it 35 years ago.
“Our mission has always been to develop products that provide comprehensive, accurate, and clinically relevant information to aid ophthalmologists in achieving better outcomes for their patients. Our future goals include enhancing image quality through higher resolution, expanding the applications of imaging technologies, and integrating AI solutions into the growing HEYEX Healthcare IT platform,” he said.
“We are delighted that EssilorLuxottica, a global leader in eyecare, embraces our vision for creating a shared care system spanning from research to home monitoring. Together, we are strongly positioned to significantly advance patient care and improve clinical outcomes.”
The transaction is expected to close in the second half of 2024 pending regulatory approvals and other customary closing conditions.
Supreme acquisition
Meanwhile, EssilorLuxottica has also entered into an agreement with global apparel and footwear company VF Corporation to acquire streetwear brand Supreme for US$1.5 billion (AU$2.2 billion).
Milleri and du Saillant said: “We see an incredible opportunity in bringing an iconic brand like Supreme into our company. It perfectly aligns with our innovation and development journey, offering us a direct connection to new audiences, languages and creativity.”
“With its unique brand identity, fully-direct commercial approach and customer experience – a model we will work to preserve – Supreme will have its own space within our house brand portfolio and complement our licensed portfolio as well. They will be well-positioned to leverage our group’s expertise, capabilities, and operating platform.”
VF’s president and CEO Mr Bracken Darrell said that due to the brand’s distinct business model and VF’s integrated model, the company’s strategic portfolio review concluded there are limited synergies between the two, making a sale a natural next step.
“Alongside the other notable brands in EssilorLuxottica’s portfolio, Supreme and its talented team will be well-positioned for continued success. While we will always look to adjust the VF portfolio from time to time, this transaction gives us increased balance sheet flexibility. It also supports our overall program to better position the company for long term growth and more normalised debt levels,” he said.
Supreme founder Mr James Jebbia added that EssilorLuxottica is a unique partner that understands the need to stay true to the brand and continue to operate and grow as it has for the past 30 years.
“This move lets us focus on the brand, our products, and our customers, while setting us up for long-term success,” he said.
The transaction is expected to close by the end of 2024, subject to customary closing conditions and regulatory approvals.
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