draft, not for distribution - Corporate-ir

Luxottica Group and Oakley complete merger, beginning a journey that
will make the business significantly stronger going forward
Milan, Italy and Foothill Ranch, California, November 14, 2007 - Luxottica Group S.p.A.
(NYSE: LUX; MTA: LUX), a global leader in eyewear, and Oakley, Inc. (NYSE: OO), a worldwide
specialist in sport performance optics, announced today the completion of the merger between
the two companies for a total purchase price of approximately US$2.1 billion. Oakley will now
be a wholly-owned subsidiary of Luxottica Group and, as a result of the completion of the
merger, Oakley’s shares will cease to trade on the New York Stock Exchange at the close of the
market today.
Today marks the launch of a new Group with extraordinary potential, including expected
consolidated pro forma net revenues for fiscal year 2007 of €5.7 billion and consolidated pro
forma EBITDA for the same period of approximately €1.2 billion. Luxottica Group expects that
the transaction will result in approximately €100 million per year in operating synergies within
three years, driven by revenue growth and efficiencies.
Commenting on the merger, Andrea Guerra, CEO of Luxottica Group S.p.A., said, “We are
extremely pleased with the closing of the merger with Oakley, with whom we have been
partners for a long time. We have long admired the Oakley brand, products, and corporate
culture. Joint teams from the two companies have been focusing for months on the tremendous
business opportunities we have ahead, which will become operating plans by year-end. Today
represents the beginning of a new phase for all of us, a journey which will make our Group
much stronger going forward.”
Scott Olivet, CEO of Oakley, Inc., commented, “The fact that Luxottica and Oakley had similar
beginnings, share the same values around the importance of brand and product, and have
individuals around the world who have worked closely for years, gives us a very strong
foundation for success. While we have tremendous work in front of us, our early integration
planning efforts give us confidence that the value of this combination can, in fact, be realized.
We are excited to begin the next chapter in our history.”
In accordance with the terms of the June 2007 merger agreement, Oakley’s outstanding shares
of common stock have been converted into the right to receive US$ 29.30 per share, in cash.
Citibank has been appointed as the paying agent for Luxottica Group.
Luxottica Group and Oakley will hold a brief joint conference call to discuss the completion of
the merger with the investment community on Thursday, November 15, 2007, at 7:00 AM PT (10
AM ET, 3 PM GMT and 4 PM CET). The audio webcast will be also available at Luxottica Group’s
corporate website at www.luxottica.com/english/investor_relations/webcast.html and on
Oakley’s investor website at investor.oakley.com. A replay of the conference call will be
available starting on November 16 at 9:00 AM PT (12:00 AM ET, 5:00 PM GMT and 6 PM CET),
calling from USA: +1 (866) 583 1039, UK: +44 (208) 196 1998 passcode 699162#. Members of the
media may participate in the call in a “listen-only” mode. Please note that a slide presentation
will be available for download from Luxottica Group’s investor relations corporate website at
www.luxottica.com/english/investor_relations/presentation.html and on Oakley’s investor
website at investor.oakley.com shortly before the start of the audio Web cast.
About Luxottica Group S.p.A.
Luxottica Group is a global leader in eyewear, with over 5,900 optical and sun retail stores in
North America, Asia-Pacific, China and Europe and a strong brand portfolio that includes RayBan, the best-selling sun and prescription eyewear brand in the world, as well as, among others,
license brands Bvlgari, Burberry, Chanel, Dolce & Gabbana, Donna Karan, Polo Ralph Lauren,
Prada, Tiffany’s and Versace, and key house brands Vogue, Persol, Arnette and REVO. In addition
to a global wholesale network that touches 130 countries, the Group manages leading retail
brands such as LensCrafters and Pearle Vision in North America, OPSM and Laubman & Pank in
Asia-Pacific, and Sunglass Hut globally. The Group’s products are designed and manufactured in
six Italy-based high-quality manufacturing plants and in the only two China-based plants whollyowned by a premium eyewear manufacturer. For fiscal year 2006, Luxottica Group posted
consolidated net sales of €4.7 billion. Additional information on the Group is available at
www.luxottica.com.
About Oakley, Inc.
Oakley is a global leader in sport performance optics including premium sunglasses, goggles, and
prescription eyewear. Headquartered in Southern California, the company's optics brand
portfolio includes Dragon, Eye Safety Systems, Fox Racing, Mosley Tribes, Oliver Peoples, and
Paul Smith Spectacles. In addition to its global wholesale business, the company operates retail
chains including Bright Eyes, Oakley Stores, Sunglass Icon and The Optical Shop of Aspen. The
company also offers a wide selection of Oakley-branded apparel, footwear, watches and
accessories. Additional information is available at www.oakley.com.
Safe Harbor Statement
Certain statements in this press release may constitute “forward-looking statements” as defined
in the Private Securities Litigation Reform Act of 1995. Such statements involve risks,
uncertainties and other factors that could cause actual results to differ materially from those
that are anticipated. Such risks and uncertainties include, but are not limited to, the ability to
successfully integrate Oakley’s operations, the ability to realize expected synergies from the
merger with Oakley, the ability to successfully introduce and market new products, the ability
to maintain an efficient distribution network, the ability to predict future economic conditions
and changes in consumer preferences, the ability to achieve and manage growth, the ability to
negotiate and maintain favorable license arrangements, the availability of correction
alternatives to prescription eyeglasses, fluctuations in exchange rates, the ability to effectively
integrate other recently acquired businesses, as well as other political, economic and
technological factors and other risks referred to in Luxottica Group’s and Oakley’s filings with
the U.S. Securities and Exchange Commission. These forward-looking statements are made as of
the date hereof and, under U.S. securities regulation, neither Luxottica Group nor Oakley
assumes any obligation to update them.
Contacts:
Media Relations
Carlo Fornaro
Luxottica Group
Corporate Communications Director
+39 (02) 8633 4062
[email protected]
Investor Relations
Alessandra Senici
Luxottica Group
Group Investor Relations Director
+39 (02) 8633 4069
[email protected]
Luca Biondolillo
Luxottica Group
Head of International Communications
+39 (02) 8633 4668
[email protected]
Lance Allega
Investor Relations/Media Relations
Oakley, Inc.
+1 (949) 672-6985
[email protected]
SEE ATTACHED TABLE AND NOTES
Pro forma EBITDA reconciliation table
Luxottica
FY07 E
(billion of €)
Oakley
FY07 E
(billion of US$)
Pro forma
Combined Entity
FY07 E
(billion of €)
Operating income
(+)
0.8
0.1
0.9
Depreciation & amortization
(+)
0.2
0.1
0.3
EBITDA
(=)
1.1
0.2
1.2
Notes: Above figures for Oakley Inc. reflect an average exchange rate of €1 = US$1.35.
EBITDA represents operating income before depreciation and amortization.
Historical and forecasted EBITDA is not a measure of performance under accounting principles generally accepted in
the United States (U.S. GAAP). We include them in this press release in order to:
improve transparency for investors;
assist investors in their assessment of the Company’s historical and forecasted operating performance and its
ability to refinance its debt as it matures and incur additional indebtedness to invest in new business
opportunities;
assist investors in their assessment of the Company’s cost of debt;
ensure that these measures are fully understood in light of how the Company evaluates its operating results and
leverage;
properly define the metrics used and confirm their calculation; and
share these measures with all investors at the same time.
Historical and forecasted EBITDA is not meant to be considered in isolation or as a substitute for items appearing on
our financial statements prepared in accordance with U.S. GAAP. Rather, these non-GAAP measures should be used
as a supplement to U.S. GAAP results to assist the reader in better understanding the operational performance of the
Company. The Company cautions that these measures are not defined terms under U.S. GAAP and their definitions
should be carefully reviewed and understood by investors. Investors should be aware that Luxottica Group’s method
of calculating EBITDA may differ from methods used by other companies. The Company recognizes that the
usefulness of EBITDA as evaluative tool may have certain limitations, including:
EBITDA does not include interest expense. Because we have borrowed money in order to finance our operations,
interest expense is a necessary element of our costs and ability to generate profits and cash flows. Therefore,
any measure that excludes interest expense may have material limitations;
EBITDA does not include depreciation and amortization expense. Because we use capital assets, depreciation
and amortization expense is a necessary element of our costs and ability to generate profits. Therefore, any
measure that excludes depreciation and expense may have material limitations;
EBITDA does not include provision for income taxes. Because the payment of income taxes is a necessary
element of our costs, any measure that excludes tax expense may have material limitations;
EBITDA does not reflect cash expenditures or future requirements for capital expenditures or contractual
commitments;
EBITDA does not reflect changes in, or cash requirements for, working capital needs;
EBITDA does not allow us to analyze the effect of certain recurring and non-recurring items that materially
affect our net income or loss.
We compensate for the foregoing limitations by using EBITDA as comparative tool, together with U.S. GAAP
measurements, to assist in the evaluation of our historical and forecasted operating performance and leverage.
-ENDS-
Di seguito si riporta la traduzione in italiano del comunicato stampa congiunto
diffuso da Luxottica Group S.p.A. e Oakley Inc.
Luxottica: chiude l’acquisizione di Oakley, nasce un Gruppo più forte per il futuro
Milano e Foothill Ranch, California, 14 novembre 2007 - Luxottica Group S.p.A. (MTA: LUX;
NYSE: LUX), leader mondiale nel settore degli occhiali, e Oakley Inc. (NYSE: OO), azienda di
eccellenza nell’ottica per lo sport, annunciano che in data odierna è stata chiusa l’acquisizione
di Oakley Inc. da parte di Luxottica Group per un controvalore complessivo di circa US$2,1
miliardi. Pertanto, Oakley è da oggi una controllata al 100% dal Gruppo. Dopo la chiusura
odierna dei mercati, le azioni di Oakley non verranno più negoziate sul New York Stock Exchange
e saranno successivamente delistate.
Nasce così un Gruppo con un potenziale eccezionale: vendite nette proforma attese per il 2007
pari a €5,7 miliardi ed EBITDA proforma sempre per il 2007 pari a circa €1,2 miliardi. Da questa
operazione Luxottica Group si attende nei prossimi tre anni circa €100 milioni all’anno di
sinergie derivanti dall’incremento delle vendite e da una maggiore efficienza operativa.
Commentando l’acquisizione, Andrea Guerra, Amministratore Delegato di Luxottica Group, ha
dichiarato: “Siamo entusiasti di aver chiuso questo accordo con Oakley, un’azienda con cui
collaboriamo da anni e che ammiriamo per il modello di business e per la sua cultura. Da
qualche mese team misti Oakley e Luxottica stanno analizzando le grandi opportunità di
business che abbiamo di fronte. Per fine anno il tutto si trasformerà in progetti operativi. Oggi
inizia una nuova fase per tutti noi, un nuovo viaggio che renderà il nostro Gruppo ancora più
forte nel prossimo futuro”.
Scott Olivet, CEO of Oakley Inc. ha commentato “Il fatto che Luxottica e Oakley abbiano radici
simili, condividano gli stessi valori sul marchio e sul prodotto, siano partner in tutto il mondo
da lungo tempo ci fornisce solide basi per un grande successo. Ci attende un grande impegno,
ma il lavoro preliminare di integrazione che abbiamo svolto insieme ci fa ben sperare sulla
riuscita di questa operazione. Siamo entusiasti di iniziare un nuovo capitolo nella storia di
Oakley.”
L’accordo di fusione sottoscritto da Luxottica Group e Oakley Inc. nel giugno 2007 prevede che
le azioni di Oakley Inc. siano trasformate nel diritto di ricevere US$29,30 per azione in contanti.
Citibank è la banca agente nominata da Luxottica Group.
Luxottica Group e Oakley terranno una breve conference call congiunta, disponibile anche via
webcast sul sito web www.luxottica.com/investor_relations/webcast.html, per la comunità
finanziaria giovedì 15 novembre alle 16.00 CET (7 AM PT, 10 AM ET e 3 PM GMT)
Una presentazione sarà disponibile nella sezione Investor Relations del sito web di Luxottica
Group, all’indirizzo www.luxottica.com/ITA/IR/conferencecall.html, prima dell’inizio della
conference call. Una registrazione della conference call sarà disponibile a partire dal 15
novembre alle 18.00 CET (9 AM PT, 12 AM ET e 17.00 GMT) chiamando il numero +39 (02)
36008100, usando il codice 699162#. I giornalisti potranno partecipare alla conference in
modalità “listen only”.
Luxottica Group S.p.A.
Luxottica Group è leader mondiale nel settore degli occhiali di fascia alta e di lusso, con oltre 5.900 negozi operanti
sia nel segmento vista che sole in Nord America, Asia-Pacifico, Cina, Europa e un portafoglio marchi forte e ben
bilanciato. Tra i marchi propri figurano Ray-Ban, il marchio di occhiali da sole più conosciuto al mondo, Vogue, Persol,
Arnette e REVO mentre i marchi in licenza includono Bvlgari, Burberry, Chanel, Dolce & Gabbana, Donna Karan, Polo
Ralph Lauren, Prada e Versace. Oltre a un network wholesale globale che tocca 130 paesi, il Gruppo gestisce nei
mercati principali alcune catene leader nel retail tra le quali LensCrafters e Pearle Vision in Nord America, OPSM e
Laubman & Pank in Asia-Pacifico e Sunglass Hut in tutto il mondo. I prodotti del Gruppo sono progettati e realizzati in
sei impianti produttivi in Italia e in due, interamente controllati, nella Repubblica Popolare Cinese. Nel 2006 Luxottica
Group ha registrato vendite nette pari a €4,7 miliardi. Ulteriori informazioni sul Gruppo sono disponibili su
www.luxottica.com.
Oakley, Inc.
Oakley è leader mondiale nell’ottica per lo sport, la sua gamma di prodotti si estende dagli occhiali da sole di fascia
alta, alle maschere sportive fino alle montature da vista. L’azienda, il cui quartiere generale si trova nella California
meridionale, gestisce un portafoglio marchi costituito da Dragon, Eye Safety Systems, Fox Racing, Mosley Tribes,
Oliver Peoples, e Paul Smith Spectacles. Oltre alle attività wholesale globali, Oakley opera nel segmento retail
tramite le catene Bright Eyes, Oakley Stores, Sunglass Icon e The Optical Shop of Aspen. Inoltre l’azienda
commercializza un’ampia scelta di abbigliamento, calzature, orologi e accessori a marchio Oakley. Ulteriori
informazioni sono disponibili sul sito www.oakley.com.
Safe Harbor Statement
Talune dichiarazioni contenute in questo comunicato stampa potrebbero costituire previsioni ("forward looking
statements") così come definite dal Private Securities Litigation Reform Act del 1995. Tali dichiarazioni sono soggette
a rischi e incertezze e altri eventi che potrebbero portare i risultati effettivi a differire, anche in modo sostanziale,
dalle relative previsioni. Tra i rischi e le incertezze rientrano, a titolo meramente esemplificativo, la capacità di
integrare con successo le attività di Oakley, la capacità di concretizzare le sinergie attese dall’acquisizione di Oakley,
fluttuazioni valutarie, fattori economici ed eventi meteorologici che possono influenzare gli acquisti dei consumatori,
la capacità di Luxottica Group e Oakley Inc. di lanciare con successo nuovi prodotti, di integrare i business
recentemente acquisiti e di implementare iniziative volte a stimolare il fatturato e a ridurre i costi, la disponibilità di
strumenti correttivi alternativi agli occhiali, altri fattori politici, economici e tecnologici, e gli altri fattori di rischio
ed incertezza menzionati nella documentazione societaria depositata presso la Securities and Exchange Commission.
Tali previsioni, aspettative e/o opinioni sono formulate alla data odierna e, secondo la US securities regulation, né
Luxottica Group né Oakley Inc. si assumono alcun obbligo di aggiornamento.
Contatti
Media Relations
Carlo Fornaro
Luxottica Group
Corporate Communications Director
+39 (02) 8633 4062
Investor Relations
Alessandra Senici
Luxottica Group
Group Investor Relations Director
+39 (02) 8633 4069
[email protected]
Luca Biondolillo
Luxottica Group
Head of International Communications
+39 (02) 8633 4668
[email protected]
Lance Allega
Oakley, Inc.
Investor Relations/Media Relations
+1 (949) 672-6985
[email protected]