It’s a $116 million deal.

Luxottica Group announced that it is acquiring the Óticas Carol optical franchise in Brazil.

The transaction is valued at 110 million euros (US $116 million). It is subject to customary regulatory approvals and is expected to close in the first half of 2017, according to a press release.

Established in 1997, Óticas Carol sells a range of prescription frames and sunglasses, with annual system sales of about 200 million euros (US $212 million). Óticas Carol grew its retail footprint to about 950 locations in 2016 from 500 stores in 2013 , largely through established partnerships with franchisees, according to the release.

"Brazil is a great country, one we have believed in and operated in for 25 years,” said Leonardo Del Vecchio, executive chairman of Luxottica Group. "With this transaction, we take one step further in completing our vertically integrated business model, which has shown many benefits for all our consumers."

Ronaldo Pereira, CEO of Óticas Carol, said: "The transaction brings Carol to a whole new level. Our franchisees will belong to a global eyewear company, which brings them a greater sense of security to continue to grow and invest in our brand. Now we have all the necessary tools to move forward with our expansion plans."

The transaction will mark Luxottica’s entry into the optical retail business in Brazil. Luxottica currently operates a network of Sunglass Hut stores in Brazil and has a presence through its wholesale business and a manufacturing plant in Campinas.

the major selling shareholders involved in the transaction are 3i Group plc, Neuberger Berman and Siguler Guff & Company LP.

 

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