Essilor to buy majority stake in Transitions Optical

Pinellas Park, FL-Essilor International will acquire PPG Industries’ 51% stake in Transitions Optical, announced the companies in prepared statements. Essilor has held a 49% share of Transitions Optical since the joint-venture formation 23 years ago.

“We look forward to a continued strong relationship with PPG, as they will be providing ongoing research and development services and optical dyes to Transitions Optical under multiyear agreements with Essilor,” said Dave Cole, president, Transitions Optical.

“Essilor has been a collaborative partner with us from the beginning, and this transaction is a continuation and enhancement of a relationship that has brought value to us and to our industry,” Cole added. “There are tremendous opportunities to boost expansion of photochromic products, particularly in fast-growing markets.”

“We are pleased with the enterprise value of the transaction, which reflects a valuation multiple midway between PPG’s and Essilor’s multiples, benefiting both parties,” said Charles E. Bunch, PPG chairman and chief executive officer. “Additionally, PPG will remain an important supplier of optical materials to the industry, including to Essilor.”

The transaction reflects an enterprise value of approximately $3.4 billion, with PPG receiving $1.73 billion at closing.

The deal is expected to close in the first half of 2014. In the interim, Transitions Optical will continue to be a separately managed and operated company. Supply of Transitions lenses to customers will not be affected by this announcement, and Transitions lenses will continue to be available through other lens manufacturers.

The Transitions Optical leadership team will continue to run the business as usual, according to Cole.

“We will continue to focus on strengthening our mutually beneficial relationships with all of our valued customers across the optical industry; leveraging the talents of our passionate, talented people; and providing the highest quality photochromic lenses to consumers,” he said.

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