Nasdaq registered FGX International, a subsidiary of British Virgin Islands-registered holding company FGX International Holdings Ltd., announced the purchase of privately held California eyewear manufacturer Dioptics Medical Products Inc. The company was acquired for $35 million in cash, and 952,380 FGX stock shares. FGX expects to save money by combining supply purchase and distribution functions for the two companies.
FGX designs and sells sunglasses, reading glasses and costume jewelry, while the purchased Californian company sells eyewear products for a number of business sectors, including the medical, mass market, sports and professional areas. The BVI-controlled corporation, which was reorganized from Femic Inc., a Providence manufacturer of costume jewelry, received initial public offering last October and now has the steady financial ground. This year the company looks forward to net sales of more than $255 mln, about 6% increase from the previous year, and 15% increase from 2006. FGX sells nearly 70 mln pairs of eyewear annually, under various brands.
Alec Taylor, CEO of FGX, commented that the acquisition of the company will add the new product line complementing the existing product portfolio of the company, accelerating the strategic growth initiatives and strengthening the competitive positions. In a September interview, he also said that he and other FGX executives will look to buy eyewear brands that fit into company's general strategy of offering lower-priced eyewear sold through retailers.
Steve Crellin, who had previously served as executive vice president of sales at FGX, now will be the president of the purchased company.
