FGX Int’l Exploring Possible ‘Small’ Acquisitions, Says CEO
August 10, 2009 12:30 AM
SMITHFIELD, R.I.—FGX International’s CEO, Alec Taylor told financial analysts that the company was exploring acquisitions, possibly “small tuck-in deals in optical that complement our existing business, either a new brand or a new channel of distribution,” adding, “I’d still say it is 50/50 that we complete something by year end and any such transaction would be funded from the existing credit facility.” Taylor made the comments during a conference call with analysts on Aug. 6 following the posting of FGXI’s (NASDAQ: FGXI) second quarter results.
He said, “We have also embarked on a longer range strategy to look for a third leg to the stool now that we’ve exited the jewelry business. We are looking for businesses that will diversify us somewhat yet leverage our abilities in marketing, supply chain management and field service in the mass channels of trade. Nothing is imminent but we think it is important to begin this process as we continue to build our company.”
When asked about rumors regarding the company’s interest in merging with Italian eyewear manufacturer Sàfilo, Taylor commented, “The Sàfilo subject came out of our largest shareholder, Berggruen Holdings, not us. The board of FGXI has not authorized any initiatives there and management has spent no time on it. You should not expect, and there is no expectation on our part, of a transaction like that. We are very focused on our business and acquisitions that would almost surely be domestic in nature. I think longer term for us to do something in Europe to gain distribution into mass channels as we try to grow our European business could be something that we would do but Sàfilo is really not complementary to what we do.”
FGXI is a leading designer and marketer of mass market non-prescription reading glasses and sunglasses whose company-owned portfolio of brands include Foster Grant, Magnivision, Anarchy, Angel and Gargoyles. Their licensed brands include Ironman Triathlon, Levi Strauss Signature, Body Glove, C9 by Champion and Daytona International Speedway.