This excerpt taken from the LUX 6-K filed Aug 3, 2006.
Milan, ItalyJune 23, 2006Luxottica Group S.p.A. (NYSE: LUX; MTA: LUX) today announced that it will acquire Modern Sight Optics, a leading premium optical chain that operates a total of 28 stores in Shanghai, China.
Leonardo Del Vecchio, chairman of Luxottica Group, commented: Todays acquisition is extremely important for our Group as it further extends our coverage of all most important markets in China for fashion and luxury goods to the key Shanghai market. Over the years Shanghai has established itself as the reference market for fashion and lifestyle within China and Modern Sight Optics, with its existing focus on the highest end of the market, provides an ideal platform to further develop our presence in the most dynamic retail market in the country.
Modern Sight Optics has an existing, clear positioning in the premium segment of the optical market and brings to Luxottica Group 28 highest-end stores in Shanghai. Modern Sight Optics has over time established itself as the reference premium eyewear retail chain among the wealthiest of the citys population, with stores located in premium and upscale commercial centers and shopping malls mainly in the city downtown area and affluent residential areas.
Today the Groups optical retail network in Greater China consists of a total of 290 stores. In addition to the stores in Shanghai, the Group has 75 stores in Beijing, 54 in Hong Kong and 133 mainly in the Guangdong province including the city of Guangzhou.
Luxottica Group will acquire 100 percent of the equity interest in Modern Sight Optics for a total consideration of RMB 140 million (approx. Euro 14 million), or approximately two times expected sales for fiscal year 2006.
As customary, completion of the transaction remains subject to approval by the relevant Chinese governmental authorities. Luxottica Group currently anticipates receiving such approvals later in the year. Regarding the Groups two other retail acquisitions in China, the Xueliang Optical transaction received the necessary approvals in April 2006. Ming Long is still awaiting receipt of such approvals, which Luxottica Group currently also expects to receive in July of this year.