CORRECTED-UPDATE 2-Luxottica in deal to buy France's Alain Mikli
(Removes reference to Gucci in paragraph 7)
* Acquisition to boost profitability long-term - CEO
* Mikli had sales of 60 mln euros in 2011
* Luxottica looking at other possible acquisitions
By Sabina Suzzi and Stephen Jewkes
MILAN, Nov 2 (Reuters) - Italy's Luxottica Group SpA , the world's biggest premium eyewear maker, has agreed to buy French luxury eyewear designer Alain Mikli as it seeks acquisitions to boost growth.
Luxottica said it had entered an exclusivity agreement with the company and its co-owner, London-based investment firm NEO Capital. "It's a brand that gives us image and profitability in the long term," Chief Executive Andrea Guerra told Reuters in a phone interview.
No financial details were given. "There's a process, a formality that normally lasts a couple of weeks," Guerra said.
In 2011 Alain Mikli posted net sales of about 60 million euros ($77.6 million).
According to analysts, deals of this kind, where a brand is bought, value the companies at up to 1.5 times sales, implying a price of around 90 million euros.
Guerra confirmed recent comments that the group was studying several possible acquisitions, one of which was of domestic eyewear retailer Salmoiraghi & Vigano.
Luxottica, which makes Ray-Bans as well as sunglasses for luxury brands such as Prada, has said it expects profits to grow twice as fast as sales this year. It expects sales to rise by a high single-digit percentage.
In 2011 it posted net sales of more than 6.2 billion euros. Analysts are forecasting revenue of more than 7 billion euros in 2012.
Luxottica shares were little changed at 29.87 euros at 1200 GMT. ($1 = 0.7730 euros) (Reporting by Stephen Jewkes; Editing by David Goodman)
- Washington wins diplomatic support for campaign in Iraq; Syria trickier |
- Apple iPhone 6 pre-orders hit record 4 million on first day |
- Western sanctions are testing Russia's strength: Medvedev |
- Alibaba worried about Facebook IPO as considered Nasdaq versus NYSE |
- Exclusive: Two Apple medical trials shed light on how HealthKit will work