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FGX INTERNATIONAL HOLDINGS LTD.
FGX, WHICH SELLS eyewear under brands like Foster Grant, is reportedly in talks to be acquired by the French company Essilor International.
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SMITHFIELD – FGX International Inc. is reportedly near a deal to be bought out by one of France’s biggest companies, a British newspaper reported this week.
In an item on Wednesday, The Daily Telegraph reported that Essilor International S.A. “is closing in on a takeover deal” to acquire the Smithfield-based maker of non-prescription reading glasses and sunglasses.
The report comes less than two weeks after Providence Business News reported that FGX has put in place a new contract with its top executives that increased the payouts they will receive if the company is taken over. Those agreements took effect on Nov. 6.
The Telegraph said Essilor is now in “exclusive talks” with Nicolas Berggruen, the eccentric billionaire who is FGX’s largest shareholder, after first approaching FGX about an acquisition five weeks ago. Berggruen suggested last summer that FGX should consider merging with Italian luxury glasses designer Safilo Group SpA.
Essilor submitted a conditional bid of $18 a share two weeks ago, but FGX is holding out for $23 a share, according to The Telegraph. FGX shares jumped 10 percent after the report was published Wednesday to close at $16.70, then fell back to $16.25 on Thursday. The shares were up 3.5 percent to $16.81 at 11:14 a.m. Friday.
Essilor manufacturers lenses for sunglasses and ophthalmic equipment. Its profit totaled 382 million euros ($565.89 million) on 3.07 billion euros ($4.55 billion) in sales last year.
FGX is incorporated in Delaware and has its headquarters in Smithfield. It is a subsidiary of FGX International Holdings Ltd., which is incorporated in the British Virgin Islands.
Additional information is available at fgxi.com.
