Inspecs Announces Acquisition of Eschenbach

 

The following is a summary of original

 

Inspecs Group — a leading designer, manufacturer and distributor of eyewear frames, announces that it has conditionally agreed to acquire all of the equity interests in Eschenbach Holding GmbH (“Eschenbach”) (the “Acquisition”) for €94.85 million (approximately £84.7 million(1)) (the “Consideration”). The consideration will be paid wholly in cash on closing.

 

Eschenbach is a leading, global, eyewear supplier headquartered in Nuremberg, Germany. It has two divisions, one focused on designing and distributing glasses frames (the “Eyewear Division”) and one on designing, manufacturing and distributing specialist optics products (the “Optics Division”).

 

The Acquisition represents a key strategic step in the Company’s growth as a global, vertically integrated, eyewear firm. Eschenbach’s established presence in the USA and continental Europe (in particular Germany and France) alongside its portfolio of more than 15 ‘in house’ and licensed brands are complementary to Inspecs and will help position the Company as one of the leading eyewear companies in the world.

 

The Acquisition and associated costs will be funded by way of; (i) a conditional placing to raise gross proceeds of £64 million (the “Placing”) to be announced separately today (the “Placing Announcement”); (ii) $8 million (approximately £6.0 million(2)) drawn down from the Company’s existing bank facility and a further $10 million (approximately £7.5 million(2)) under an accordion facility; and (iii) approximately $15 million (approximately £11.3 million(2)) in cash reserves.

 

The Inspecs board of directors (the “Board”) believe that the Acquisition will deliver on all of their strategic acquisition objectives (as set out at the time of the Company’s IPO) whilst also being financially compelling for the Company.