Luxottica Group has moved forward to acquire the majority shares (90.9%) of Milan-based accessory supplier FEDON thus taking another step forward in EssilorLuxottica’s vertical integration strategy.
While not considerably known or active in Canada, FEDON is a major player in the global eyewear cases and packaging market.
Sources indicate that the move, while not large in the total scope of EssilorLuxottica’s business, does secure their supply chain for eyewear accessories amidst growing luxury competitors, LVMH and KERING and overall consolidation in the frames sector.
The move also provides volume that can be leverages to scale-up for automation and cost reduction.
The company cites, “cutting-edge technologies and dedicated innovations (to) better fit the eyewear and spectacles with the cases and packaging to ensure maximum protection and integrity of the product.”
According to thier statement, EssilorLuxottica will also leverage the acquisition to pursue its sustainability strategy, investing in the recyclability and circularity of the packaging materials produced by the Company.
It is expected that the transaction will close by the end of June 2022.
Click HERE for the full press release.