LensCrafters 2006 Annual Report Download - page 127

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NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS |127 <
accompanying Consolidated Balance Sheets. The acquisition was made as a result of the
Company’s strategy to continue expansion of its retail business in The People’s Republic of
China. No pro forma financial information is presented, as the acquisition was not material to the
Company’s Consolidated Financial Statements.
d) Pending acquisitions
•In February 2007, the Company completed the acquisition of certain assets and assumed certain
liabilities of D.O.C Optics Corporation and its affiliates, an optical retail business with
approximately 100 stores located primarily in the Midwest United States of America for
approximately US$ 110 millions in cash (Euro 83.4 million converted at the December 31, 2006
Noon Buying Rate as discussed in Note 1). The Company expects to convert the stores acquired
to the current operating names, “LensCrafters” and “Pearle”. The acquisition will be accounted for
in accordance with SFAS 141, and accordingly, the purchase price including direct acquisition-
related expenses will be allocated to the assets acquired and liabilities assumed based on their
fair value at the date of the acquisition. The acquisition was made as a result of the Company’s
strategy to continue expansion of its retail business in the United States of America.
•On January 25, 2007, Luxottica Group announced that, in compliance with directions issued by
the Supreme Court of India on December 12, 2006, it intends to launch a public offer to acquire
up to an additional 20% of the equity shares of RayBan Sun Optics India Ltd. through the Group’s
subsidiary,RayBan Indian Holdings, Inc. RayBan Sun Optics India Ltd. is a company listed on the
Bombay Stock Exchange.
Should the offer be fully accepted, Luxottica Group’s indirect interests in RayBan Sun Optics India
Ltd. will increase to approximately 64%, from its current 44% stake. The Group acquired its interest
in RayBan Sun Optics India Ltd. in connection with the purchase of the Ray-Ban eyewear business
from Bausch & Lomb in 1999.
Luxottica Group expects the maximum investment related to this offer to be approximately Euro 11
million, including incremental interest to be paid to certain shareholders. These amounts will not
have a material financial impact on the Group.
•On March 23, 2007 Luxottica Group announced that it has acquired two prominent specialty sun
chains in South Africa, with a total of 65 stores. The two acquisitions represent an important step
in the expansion of the Company’s sun retail presence worldwide. Luxottica Group’s total
investment in the two transactions will be approximately Euro 10 million. Both transactions are
expected to close during the second quarter of 2007, subject to customary closing conditions.