EssilorLuxottica announced an acquisition deal with Heidelberg Engineering GmbH in which it will acquire an 80% stake in the high-tech solutions company.
This is big news! Let’s start with an Essilor rundown.
EssilorLuxottica SA was established in 2018 following the acquisition of Italian eyewear groupLuxottica by the international ophthalmic company Essilor International.
The Paris, France-based, vertically-integrated, multinational corporation is focused on designing, producing, and marketing the following:
- Ophthalmic lenses
- Optical equipment
- Prescription glasses
- Sunglasses
Any notable brands I would know?
With over 150 major brands, most likely.
- For example: Ray-Ban, Vogue Eyewear, Arnette, Costa (and others)
- Plus, licensed brands include Giorgio Armani, Burberry, Chanel, Dolce&Gabbana, Jimmy Choo, Ralph Lauren, and Prada, to name a few
The company also owns EyeMed, an eyewear insurance company, as well as the following eyewear retailers:
- LensCrafters
- Pearle Vision
- Sunglass Hut
What about lens technologies?
We’d be remiss if we didn’t mention the company’s advanced lens technologies like Varilux, Transitions, Eyezen, Stellest, and Xperioro—along with the recent addition of Ray-Ban, Oakley, Barberini and Shamir Optical.
- Other product news:
- In March 2024, Essilor demoed the Nuance Audio, a proprietary eyewear software featuring hearing technology
- In February 2023, the company launched a new addition to its Varilux progressive lenses: the Varilux XR series, an artificial intelligence (AI)-based lens for presbyopia
And more recently, sales from the company’s second-generation smart glasses Ray-Ban | Meta, the first-ever eyewear with live streaming and Meta AI built-in that launched last fall, have reportedly exceeded expectations.
Now Heidelberg Engineering.
Founded in 1991, the Baden-Württemberg, Germany-based, high-tech imaging solutions company designs, manufactures, and distributes ophthalmic diagnostic devices for ocular diseases such as:
- Glaucoma
- Age-related macular degeneration (AMD)
And its products?
Heidelberg’s product lineup extends to optical coherence tomography (OCT) real-time image processing analytics, large-scale data analysis, and digital surgical navigation.
Most recently: The company was granted FDA 510(k) clearance for its SPECTRALIS OCT Angiography (OCTA) Module with SHIFT technology, a next-generation imaging platform designed to reduce image acquisition time by 50% (with a scan rate of 125 kHz).
How about some details on this agreement?
No financial details have been disclosed as of yet regarding Essilor’s majority stake in Heidelberg.
However, the move is noted as representing “a step forward in (Essilor’s) strategy and its medtech journey,” the company stated.
Exactly how will this impact Heidelberg?
Essentially, no major changes—Heidelberg is expected to continue market operations under its brand.
Go on …
EssilorLuxottica CEO and Chairman Francesco Milleri as well as Deputy CEO Paul du Sailant noted that Heidelberg’s early detection and diagnosis expertise and involvement in research and development will bolster Essilor’s position within the medical technology (med-tech) space.
“From logistics to manufacturing to global distribution, we are dedicated to fostering (Heidelberg’s) long-term growth while enhancing the doctor and patient experience,” they stated.
So what is Heidelberg planning for the future?
According to the company’s Co-Founder and Managing Director Christoph Schoess, Heidelberg’s goals include:
- Enhancing image quality via higher resolution
- Expanding Imaging technology applications
- Integrating AI solutions into its HEYEX Healthcare IT platform
He added that Heidelberg and EssilorLuxottica’s agreement is intended to enable the companies to “significantly advance patient care and improve clinical outcomes.”
Lastly… when will this transaction take effect?
Ideally in H2 2024—pending regulatory approvals and other customary closing conditions, according to the companies.