By Matthias Blamont
PARIS (Reuters) - EssilorLuxottica (PA:ESLX) said it would buy Dutch optical retailer GrandVision (AS:GVNV) in a cash transaction that could amount to a total of 7.2 billion euros (£6.5 billion), that it hopes to complete by mid 2021.
The eyewear company, formed last year after the merger of French lenses specialist Essilor and Italian spectacles maker Luxottica, said it would acquire a 76.72% stake in GrandVision from HAL NV at a price of 28 euros per share.
This price could be increased to 28.42 euros per share if the deal is not closed within a year, and the terms of the deal value the whole of Grandvision at up to 7.2 billion euros.
Shares in GrandVision closed at 25.36 euros on Tuesday.
"With GrandVision we will be able to develop our retail network, finally extended throughout the geographies, and fully enable our multichannel and digital platforms. We will raise the quality of in-store experience for products, brands and services for the benefit of all consumers and our wholesale customers," said EssilorLuxottica executive chairman Leonardo Del Vecchio.
The transaction received support from GrandVision's management and supervisory boards, EssilorLuxottica said, adding it would launch a public offer for all the outstanding GrandVision shares after completing the deal.
GrandVision has more than 7,000 stores in more than 40 countries across Europe, Asia, North America and Latin America according to its website, and employs more than 37,000 staff.
EssilorLuxottica also posted stronger second-quarter results and confirmed its 2019 targets on Wednesday.