Essilor accelerates its expansion

Written by Optician Club on . Posted in Optician News

In Africa and Latin America, Essilor accelerates its expansion and acquires CSC Labs

In North Africa and Latin Americain North Africa and Latin America, Essilor has further expanded its presence in
fast-growing markets by signing five new partnership agreements.

Essilor has enlarged its national coverage by merging a 65% interest in Optiben, a major player in ophthalmic lens distribution, and a 65% stake in prescription laboratory VST Lab, after entering Morocco in 2011 through an equity interest in L’N Optic,  With combined revenue of around €4 million and a
network of 14 local branches, this base will manufacture and distribute BBGR®-brand products. These acquisitions will allow the Company to deploy its multi-network strategy in a market with a population of 30 million shaped by low penetration of corrective lenses and a particularly vibrant presbyopia segment.

Essilor has made an agreement to acquire a majority interest in prescription laboratory SIVO in Tunisia,
and its marketing subsidiary SICOM, both located in the central port city of Sfax. Tunisia’s market leader, SIVO also operates in other North and West African markets through subsidiaries in Algeria, Morocco, Côte d’Ivoire, Togo and Cameroon. SIVO, which generated revenue of around €7 million in 2011, will continue to manufacture and distribute high value-added products in Tunisia under the Essilor Varilux® and Crizal® brand names, and sell products under its own brand name in its export markets.

In Latin America, where Essilor is pursuing a very active partnership strategy with independent
laboratories, the Company has considerably strengthened its presence in equipment with Satisloh’s
acquisition of a majority stake in CM Equipamentos Ópticos de Precisão. Based in Petropolis, Brazil,
CM is active in the manufacture of ophthalmic lens surfacing machines, has nearly 90 employees and
generates around €8 million in annual revenue. Combining Satisloh’s technological expertise with CM’s
customer base will enable the Company to offer a wide range of machines, consumables and services to
independent prescription laboratories throughout the region and to speed the spread of digital surfacing
and coating technologies.

A prescription laboratory with revenue of around €2.5 million that operates primarily in the Santo Domingo
area.Essilor has also entered the Dominican Republic by acquiring a majority interest in Opti Express,

In addition to these two new partnerships, Essilor in late 2011 set up a sales subsidiary in Colombia,
Latin America’s third-largest market with a population of 47 million. Essilor Colombia will be responsible
for directly distributing products sold under various Essilor brands in this fast-growing market.
These various transactions, which represent aggregate annual revenue of around €21 million, give
Essilor a foothold in three new countries and significantly increase the Company’s exposure in these
high-growth regions.

In the United States, the partnership will allow Essilor to enhance its positions in the San Francisco area.
Lastly, Essilor has also acquired Professional Ophthalmic Laboratories, a company based in
Roanoke, Virginia with revenue of around $3 million. Essilor has acquired a majority stake in CSC Laboratories, a large prescription laboratory based in Watsonville, California. Backed by leading-edge technologies, CSC has around 170
employees and generates annual revenue of close to $32 million. It is also a distributor of the industry’s
major brands.


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