The operation, which is valued at 110 million euros, or $117 million at current exchange rate, is expected to close within the first part of the year.
Through this acquisition, Luxottica — which, by the end of the year, will merge with French company Essilor to create the EssilorLuxottica $16 billion eyewear colossus — will significantly expand its presence in Brazil. In the South American country, where the company has a factory, Luxottica already operates a number of Sunglass Hut stores, as well as a wide wholesale network.
“Brazil is a great country, one we have believed in and operated in for 25 years,” said Luxottica executive chairman Leonardo Del Vecchio. “With this transaction, we take one step further in completing our vertically integrated business model, which has shown many benefits for all our consumers.”
Founded in 1997, Óticas Carol, which sells a wide range of optical frames and sunglasses, generates a turnover of about 200 million euros, or $212.6 million.
“The transaction brings Carol to a whole new level,” said Óticas Carol chief executive officer Ronaldo Pereira. “Our franchisees will belong to a global eyewear company, which brings them a greater sense of security to continue to grow and invest in our brand. Now we have all the necessary tools to move forward with our expansion plans.”
Luxottica features a rich portfolio, which includes several house labels including Ray-Ban, Oakley and Oliver Peoples, as well as licensed labels such as Giorgio Armani, Michael Kors, Prada and Ralph Lauren.
On Monday after trading hours in Milan, Luxottica will release sales results for its 2016 fiscal year.