Luxottica OK to buy Optifashion rumoured price 5-6 million for 60 stores

Luxottica Retail Australia has been given the green light by theAustralian Competition and Consumer Commission to take over OptifashionAustralia from HAL Investment.
Optifashion has about 60 retail optical stores, mainly in Western Australia, the majority being Just Spectacles stores.
Although not disclosed, reliable sources say the price was about $5-6million, which is far below the $22 million that Safilo Group paid forOptifashion in early 2008 and about $2 million below the $8 million HALpaid for the company when it bought it early this year, although thatwas more than offset by HAL being paid all sales revenue generated byOptifashion in 2009.
If $5-6 million is correct, it means Luxottica has bought the 60 storesfor not much more than four of th (AV Simon Optometry in Sydney) werepurchased by Safilo Group, meaning it gets the raining 55 for almostnothing.
When asked to confirm the rumoured price, Luxottica told Insight itcould not do so as it is confidential commercial information.
A condition of the ACCC’s agreent to the purchase is that there mustbe disposal of four stores in WA – at Karratha, Northam, Kwinana andBunbury. It is understood a number of parties have expressed interest inbuying all or some of the four stores.
Optifashion has annual sales of about $30 million.
Luxottica intends to re-brand the Just Spectacles stores as either OPSMor Budget Eyewear, depending on each store’s dographics. Possiblere-branding of the AV Simon Optometry, Eyedonist and Oxford Eyes storeswill be considered in the New Year, although there may be somere-branding pre-Christmas.
HAL Holding, a large Dutch investment conglomerate, which late last yearrefinanced Safilo Group and saved it from bankruptcy, buys about $40million worth of stock each quarter from Safilo, which it distributesand sells through its many retail optical outlets in Europe and Asia.