Nov 8 Essilor International said it
would buy Costa Inc, a maker of premium sport
sunglasses, in a $270 million deal that would help the French
company tap into the growing prescription sun lens market.
Costa shareholders will receive $21.50 per share,
representing an 8 percent premium over its Thursday closing
price of $19.98. The estimated enterprise value of the deal is
about $270 million.
As per the deal, certain Costa shareholders owning about 34
percent stake agreed to vote in favor of the transaction at the
forthcoming special meeting called to approve it, Essilor said
in a statement.
Based on current estimates, the deal, which will be financed
out of Essilor's cash reserves, will add to its earnings in
The world's largest maker of ophthalmic lenses said Costa's
2013 revenue is expected to be about $100 million.
"The high quality sunglasses and prescription sun lens
segment offers high potential given its low penetration rate,"
Essilor Chief Executive Hubert Sagnières said.
Previously known as A.T. Cross, Costa was founded in 1983 by
a group of fishermen who felt the need to produce high
performance sunglasses, according to the company website.