The company also issued new revenue predictions.
Essilor has taken a 50 percent stake in Photosynthesis Group, a Hong Kong-based company that markets sunglasses and corrective lenses under a range of banners, including MJS.
Photosynthesis Group primarily operates through a network of franchised shopping mall stores in China and has begun expanding abroad in Southeast Asia.
The partnership is expected to help to drive faster growth in the Chinese optical industry, while enabling Essilor to broaden its footprint in the sunwear segment.
Separately, the France-based Essilor has also agreed to purchase a 55 percent equity interest in Jiangsu Creasky Optical, an ophthalmic lens manufacturer and distributor based in Danyang, China.
Jiangsu Creasky Optical employs more than 300 people and primarily serves the domestic market. Its acquisition, which is subject to regulatory approval, is designed to expand Essilor's offering in the Chinese mid-range segment.
According to a press release: "Together, these two partnerships attest to Essilor's strong acquisitions dynamic in 2016, which is expected to result in a scope effect of around 4% for the year."
Essilor now projects revenue growth to end the year at around 3.5 percent, which it says reflects the temporary slowdown in the ophthalmic optical market in the U.S. and several other leading geographies, as well as October revenue performance. the company had previously predicted 4.5 percent.
The company added: "The solid growth anticipated therefore in full-year revenue at constant exchange rates reflects the strengthening of the Company's positions across the global marketplace."
Contribution from operations is now expected to stand at around 18.5 percent of revenue, primarily due to the slower than expected like-for-like growth and the dilution from the sustained acquisitions dynamic.
Hear What the Industry Thinks About the Ultimate Lens Package by Essilor
Eye care professionals, patients, and Essilor sales consultants shared their feedback on the Ultimate Lens Package. Watch to see why they believe the innovation behind the lens can make the difference for your practice and for your patients. For more information on the Ultimate Lens Package, contact an Essilor Sales Consultant or click here.
INVISIONMAG ON INSTAGRAM
The Latest Orbit Headlines
- 255K Signatures Collected in Effort to Allow Eyecare at Wal-Mart, Other Stores
- Eyewear Startup Lands Investor for 'Futuristic' Modular Collection
- Eye Doctors Receive $236M in Industry Payments
- Collection of Presidential Eyeglasses Brings $31K at Auction
- Eye Health Firm Raises $15M for Alzheimer's Test