An image from the Diesel ad campaign for spring/summer 2017

MILAN – Diesel and Marcolin on Wednesday said they had renewed their eyewear licensing agreement, which was first inked in 2010 and meant to run through December 2018.

The new agreement, which extends through 2023, grants Marcolin the exclusive right to design, produce and distribute Diesel’s optical frames and sunglasses.

“The early renewal of the license agreement with Diesel expresses our clear willingness to invest in prestigious and international brands in such a complex and competitive market as eyewear,” said Massimo Renon, Marcolin Group worldwide commercial general manager.

As reported, last February LVMH Moët Hennessy Louis Vuitton and Marcolin revealed a plan to set up a join venture.

Starting in 2018, Marcolin will design and manufacture eyewear for the Céline and Louis Vuitton brands. LVMH will control 51 percent of the joint venture and Marcolin will hold the remaining 49 percent.

In the run-up to the joint venture, Marcolin is launching a capital increase of 21.9 million euros, or $23.5 million at current exchange, and issuing a bond of 250 million euros, or $268.2 million, which is expected to mature in 2023.

LVMH will take a 10 percent stake in Marcolin, which produces and distributes eyewear collections for brands including Tom Ford, Tod’s, Balenciaga, Moncler and Dsquared2.

Marcolin listed a new revolving credit facility of up to 40 million euros, or $43 million. The company will use the funds to redeem 200 million euros, or $214.6 million, of senior secured notes due in 2019 and other short- and medium-term financing.

Marcolin estimated that equity contributions to the start-up costs, capital expenditures and working capital will total between 20 million and 25 million euros, or $21.4 million and $26.8 million, over the course of the next four to five years, of which it expects to fund approximately 7 million euros, or $7.5 million, in 2017.