Merger Creates $3.3 Billion Eyecare Company
RANCHO CORDOVA, Calif., Aug. 18 /PRNewswire/ -- VSP(R), the nation's largest eyecare benefits provider with 55 million members, today acquired Marchon(R) Eyewear, Inc., one of the industry's largest manufacturers and distributors of quality eyewear and sunwear for $735 million funded in a combination of cash and debt. The acquisition received regulatory approval from the California Department of Managed Care and the Connecticut Department of Insurance.
Under the terms of the agreement, Marchon will become a wholly-owned subsidiary of VSP. Al Berg, Marchon president and CEO, and Larry Roth, executive VP of Marchon, along with the Marchon global team will continue in their current roles. Marchon will operate from its New York-based headquarters as an independent entity within the VSP organization. Altair(R) Eyewear, the VSP-owned eyewear company, will become a division of Marchon and remain in its Rancho Cordova, Calif., headquarters.
"Bringing together the world-class products and expertise of Marchon with Altair, VSP's for-profit eyewear company, creates an integrated organization that benefits eyecare professionals and their customers," says Rob Lynch, president and CEO of VSP. "Together we will deliver value by focusing on quality and operational excellence."
Marchon manufactures and sells branded and proprietary eyewear and sunwear for such internationally-recognized brands as Calvin Klein, Coach, Emilio Pucci, FENDI, Jil Sander, Karl Lagerfeld, Michael Kors, Nautica, Nike, Oscar de la Renta, Sean John and X Games. Additionally, the company manufactures its own collections of eyewear including products such as Airlock(R) and Flexon(R).
Marchon offers the North American optical industry the most widely-used practice management and electronic medical records software through OfficeMate(R) Software Solutions. The acquisition merges OfficeMate with VSP's Eyefinity(R), the leading Web-based eyecare business management partner, to form the industry's premier eyecare business solutions organization.
As part of the transaction, VSP will also acquire Marchon's 50 percent ownership interest in Eye Designs(R), which is a leader in the design of custom interiors and merchandising systems for the optical industry.
"Given the rapidly changing eyecare marketplace, this is a win for Marchon, VSP and the optical industry," Al Berg, president and CEO of Marchon, states. "This merger will help us continue our vision for growth by expanding our products, services and programs to our global customer base."
VSP and Marchon will provide the following offerings to the marketplace:
-- Vision care benefits and services;
-- A global distribution channel;
-- An international portfolio of eyewear brands;
-- Integrated eyewear design and manufacturing capabilities;
-- Practice management technology; and,
-- Custom interior designs and merchandising systems.
VSP Vision Care provides vision insurance benefits to one in every six Americans. Through its network of more than 25,000 private practice eye doctors, VSP delivers full-service eyecare benefits to 55 million members in the United States and Canada. VSP is based in Rancho Cordova, Calif., and has a workforce of 2,400 employees. VSP's total revenue in 2007 was $2.6 billion.
Since its founding in 1983, Marchon has grown into one of the three largest eyewear companies in the world. Headquartered in Melville, N.Y., Marchon has international offices in Amsterdam, Hong Kong and Tokyo. The Marchon sales team and employees number more than 2,500 globally. Marchon's total sales in 2007 exceeded $525 million.
About VSP
VSP(R)'s family of companies includes the largest not-for-profit vision benefits and services company in the United States with 55 million members; VSP Labs, industry leaders in new technologies, production processes, service and logistics; Altair(R) Eyewear, which supports private-practice eye doctors with advanced eyewear technologies, distinctive brands and dispensary resources designed to complete the patient experience and Eyefinity(R), offering innovative solutions to improve overall practice management and the patient experience.
Since 1997, VSP has provided more than 470,000 low-income, uninsured children with free eyecare. Through relationships with the American Diabetes Association, Prevent Blindness America and the Center for Health Transformation, VSP promotes the importance of annual eye exams for maintaining eye health and overall wellness.
About Marchon
Marchon is one of the world's largest manufacturers, designers and distributors of quality fashion and technologically-advanced eyewear and sunwear. The company offers internationally recognized brands including Calvin Klein, Coach, Emilio Pucci, FENDI, Flexon, Jil Sander, Karl Lagerfeld, Marchon, Michael Kors, Nautica, Nike, Oscar de la Renta and Sean John. Headquartered in Melville, N.Y., with regional offices in Amsterdam, Hong Kong and Tokyo, Marchon distributes its products to more than 100,000 customer locations in more than 100 countries. OfficeMate, a wholly-owned subsidiary of Marchon, is the premier practice management software and technology company in North America.
SOURCE VSP
International News / Press Release source: PR Newswire
Copyright PR Newswire. All Rights Reserved.