By Lisa Kerner
Charlotte, N.C., June 21 - Oakley, Inc.'s board of directors approved the acquisition of the company by Luxottica Group SpA for $29.30 per share in a deal valued at $2.1 billion.
Luxottica will fund the transaction, expected to close in the second half of 2007, using operating cash flow, an available line of credit and credit facilities.
"Oakley will continue to be Oakley but with much greater resources and a platform for realizing the true potential of our brand and company," Oakley founder and chairman Jim Jannard said in a company news release.
"Oakley and Luxottica share a mutual commitment to quality, innovation, and technical skills - qualities which will help us to solidify Oakley's brand position and Luxottica's strong leadership in the market," Luxottica chairman Leonard Del Vecchio added. "I look forward to welcoming the talented Oakley management team, led by Scott Olivet and Colin Baden, to our group.''
Luxottica Group was advised by Rothschild Inc. and Winston & Strawn LLP, while Oakley was advised by Goldman Sachs & Co. and Skadden, Arps, Slate, Meagher & Flom LLP.
Luxottica is an eyewear company based in Milan.
Oakley, based in Foothill Ranch, Calif., specializes in sport performance optics including premium sunglasses, goggles and prescription eyewear.
| Acquirer: | Luxottica Group SpA
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| Target: | Oakley, Inc.
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| Transaction total: | $2.1 billion
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| Price per share: | $29.30
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| Announcement date: | June 20
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| Expected closing: | Second half of 2007
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| Stock price for target: | NYSE: OO: $24.86 on June 19
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