Inspecs announces conditional acquisition of Eschenbach
In an agreement worth nearly £85 million, Inspecs has called the proposed acquisition a “strategic step” in its growth
Through the conditional agreement, Inspecs will acquire all of the equity interests in Eschenbach for €94.85 million (approximately £84.7 million).
Eschenbach has two divisions, one focused on designing and distributing glasses frames, while the second division focuses on designing, manufacturing and distributing specialist optics products including vision technology and consumer optics.
The group has a portfolio of more than 15 ‘in house’ and licensed brands, more than 12 international subsidiaries and owns the American eyewear company, Tura.
Inspecs suggested the acquisition would represent a “strategic step” in its growth and extend its presence in key global markets, with Eschenbach’s established presence in Europe, particularly Germany and France, as well as the USA.
Robin Totterman, Inspecs CEO, said of the acquisition: “As a high-quality business with a strong management team and track record of margin-accretive growth, Eschenbach represents the ideal fit for Inspecs.”
As well as supporting Inspecs to reach key global markets, the move would enable Inspecs to broaden customer reach and strengthen its brand portfolio, Mr Totterman said.
He added that through the acquisition Inspecs could “capitalise on the compelling structural opportunities that exist in the fragmented global eyewear market.”
Mr Totterman indicated that the move would also “propel” Inspecs to become “one of the largest eyewear companies in the world.”
Earlier this year, Inspecs announced the acquisition of the Norville Group’s manufacturing operations in an agreement that the company suggested would enable it to provide a full lens offering.
The latest acquisition is expected to present new business model opportunities to broaden and enhance Inspecs’ product offering, as well as expanding its global distribution network, bringing over 250 salespeople into the group.
The senior management team of Eschenbach will join Inspecs, with Mr Totterman commenting: “We look forward to welcoming the Eschenbach team and working together to build on Inspecs’ recent positive trading momentum while accelerating our long term growth and delivering value to our shareholders.”
According to the announcement, for the financial year ended on 31 December 2019, Eschenbach generated audited revenues of $169.2 million (approximately £127.9 million).
The acquisition is conditional on several factors including shareholder approvals.