Industry News
EssilorLuxottica Expands Its Reach with Strategic Acquisitions
EssilorLuxottica has announced two significant acquisitions that further solidify its position in the med-tech and lifestyle sectors:
1. Acquisition of Heidelberg Engineering
EssilorLuxottica has agreed to acquire an 80% stake in Heidelberg Engineering, a Germany-based company specialising in diagnostic solutions, digital surgical technologies, and healthcare IT for clinical ophthalmology. This move is part of EssilorLuxottica's strategy to enhance industry standards and improve patient care.
Heidelberg Engineering, founded in 1990, brings extensive technological and scientific expertise in optical coherence tomography (OCT), real-time image processing, and analytics. The company has been a reference in the early detection of sight-threatening conditions such as glaucoma and age-related macular degeneration. With a presence in over 100 countries, Heidelberg Engineering will continue to operate under its well-established brand, delivering the same solutions and expertise its customers have come to expect.
“Heidelberg Engineering, renowned for its expertise in early detection and diagnosis, is a perfect fit for EssilorLuxottica as it will bolster our presence in the med-tech space. Heidelberg Engineering, with its commitment to research and development, rooted in excellence, shares our core values. By harnessing the full spectrum of our Group's capabilities in the optical industry, from logistics to manufacturing to global distribution, we are dedicated to fostering their long-term growth while enhancing the doctor and patient experience,” commented Francesco Milleri, Chairman and Chief Executive Officer, and Paul du Saillant, Deputy Chief Executive Officer at EssilorLuxottica.
"Innovation and quality have been key drivers for Heidelberg Engineering ever since Gerhard Zinser and I founded the company 35 years ago,” added Christoph Schoess, co-founder and Managing Director of Heidelberg Engineering. “Our mission has always been to develop products that provide comprehensive, accurate, and clinically relevant information to aid ophthalmologists in achieving better outcomes for their patients. Our future goals include enhancing image quality through higher resolution, expanding the applications of imaging technologies, and integrating AI solutions into the growing HEYEX Healthcare IT platform. We are delighted that EssilorLuxottica, a global leader in eyecare, embraces our vision for creating a shared care system spanning from research to home monitoring. Together, we are strongly positioned to significantly advance patient care and improve clinical outcomes.”
2. Acquisition of Supreme from VF Corporation
In another significant move, EssilorLuxottica has entered into a definitive agreement to acquire the Supreme brand from VF Corporation for US$1.5 billion in cash. Supreme, known for its quality, style, and authenticity, has expanded its presence in key markets such as China and South Korea. The brand operates 17 retail stores and an e-commerce platform across all regions.
Francesco Milleri, Chairman and Chief Executive Officer and Paul du Saillant, Deputy Chief Executive Officer at EssilorLuxottica said: “We see an incredible opportunity in bringing an iconic brand like Supreme® into our Company. It perfectly aligns with our innovation and development journey, offering us a direct connection to new audiences, languages and creativity. With its unique brand identity, fully-direct commercial approach and customer experience – a model we will work to preserve – Supreme® will have its own space within our house brand portfolio and complement our licensed portfolio as well. They will be well-positioned to leverage our Group’s expertise, capabilities, and operating platform.”
Bracken Darrell, President and Chief Executive Officer at VF said, “Under VF, Supreme® expanded its presence in the key markets of China and South Korea and has returned to delivering strong growth. However, given the brand’s distinct business model and VF’s integrated model, our strategic portfolio review concluded there are limited synergies between Supreme® and VF, making a sale a natural next step. Alongside the other notable brands in EssilorLuxottica’s portfolio, Supreme® and its talented team will be well-positioned for continued success.” Darrell continued, “While we will always look to adjust the VF portfolio from time to time, this transaction gives us increased balance sheet flexibility. It also supports our overall program to better position the company for long term growth and more normalized debt levels.”
Supreme® Founder James Jebbia commented, “In EssilorLuxottica, we have a unique partner that understands that we are at our best when we stay true to the brand and continue to operate and grow as we have for the past 30 years. This move lets us focus on the brand, our products, and our customers, while setting us up for long-term success.”
These acquisitions underscore EssilorLuxottica's commitment to innovation and growth. Integrating Heidelberg Engineering's advanced technologies into EssilorLuxottica's portfolio will enhance patient care and improve clinical outcomes. Meanwhile, the addition of Supreme to EssilorLuxottica's brand portfolio will expand its reach into new markets and demographics.
According to the company, EssilorLuxottica's mission to help people around the world see more and be more by addressing their evolving vision needs and personal style aspirations remains at the forefront of these strategic moves. The company's OneSight EssilorLuxottica Foundation has already given access to sustainable vision care to more than 760 million people in underserved communities.
EssilorLuxottica's acquisitions of Heidelberg Engineering and Supreme demonstrate its strategic vision and commitment to innovation and growth. These moves will not only enhance the company's offerings but also expand its global reach and impact. As EssilorLuxottica continues to evolve, it remains dedicated to improving the lives of its customers and communities worldwide.
