It's known as a "hive down."

CHARENTON-LE-PONT, FRANCE – The Essilor International board of directors announced that the "hive down" of Essilor’s activities is expected to be completed by the end of 2017.

Translegal.com explains that hive down is a British term meaning "the transfer of part of a company's business to a newly created subsidiary."

The hive down was previously approved by Essilor’s shareholders during their general meeting on May 11, according to a press release.

In the hive down, Essilor will contribute its activities and equity holdings to a subsidiary that was formerly named Delamare Sovra and has been renamed "Essilor International."

According to the release: "The hive down of Essilor’s activities is a condition precedent to the contribution by Delfin of its Luxottica shares to Essilor. Once the other conditions precedent to complete the contribution of the Luxottica shares to Essilor are satisfied, Essilor will be renamed 'EssilorLuxottica' and will become a holding company at the top of the combined group, holding Essilor International and Luxottica."

The governance of Essilor International will be similar to the current governance of Essilor. Hubert Sagnières will be CEO of the company, and Laurent Vacherot will be deputy CEO.

"The hive down constitutes another significant step towards the completion of the combination of Essilor and Luxottica," Essilor states.

Luxottica, based in Milan, Italy, is the largest eyewear firm in the world, with a brand portfolio that includes names such as Ray-Ban and Oakley. Its retail division includes many well-known names, including LensCrafters, Sunglasses Hut and Pearle Vision.

Essilor, which makes lenses as well as instruments and equipment, is based in France. Its brand portfolio includes names such as Varilux, Crizal, Transitions and Foster Grant.

This story is tagged under: