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Luxottica enters Israeli market with Erroca purchase

August 7, 2011

International eyeware manufacturer and retailer Luxottica Group S.p.A. announced that it has entered into an agreement to acquire Erroca, a sunglass specialty retail chain in Israel with more than 60 stores and projected 2011 revenues of €25 million.

According to the announcement, the deal is Luxottica's first foray into the retail business in Israel, a country where Luxottica already has a wholesale presence.

Luxottica said the newly acquired stores will be rebranded under the company's Sunglass Hut brand over time.

"This acquisition is strategically important to Luxottica, as it allows us to establish a meaningful retail presence in Israel, a very dynamic and fast-growing market," said Luxottica EVP for Sun and Luxury Retail, Fabio d'Angelantonio, in the announcement.

"Israel represents a very important market for Luxottica," added Paolo Alberti, Luxottica's executive vice president of wholesale.

The company said its entry in the Israeli market is part of Sunglass Hut's global strategy of expanding in the "sun belt", or regions with high growth potential and a relevant number of sunny days per year. Sunglass Hut entered the Mexican, Brazilian and Chinese retail markets in 2011, the company said.

The €20 million deal is awaiting approval by relevant competitive authorities but is expected to close by the end of October 2011.