Kering Eyewear is acquiring Maui Jim, the world’s largest independent brand of high-end sunglasses. The deal is subject to approval by regulators but should be complete by the second half of 2022.
Speaking at a press conference this morning, Kering Eyewear’s president and CEO, Roberto Vedovotto, did not wish to disclose any of the deal’s terms but described the acquisition as a matter of complementarity: an exchange of tech for new markets. It also rounds out Kering’s portfolio for the high-end market and, thanks to the unique features of Maui Jim’s sunglass lenses, completes its offering from the optical-shop perspective.
On the one hand, the Hawaiian brand offers its expertise in polarized lenses, including its patented PolarizedPlus2 lens, which protects the eye from glare and ultraviolet light while also enhancing color. On the other, it offers prescription sunglass lenses. Just last month, moreover, Maui Jim released the MauiPassport Boost, a lens designed to reduce eye strain for habitual users of digital screens. Vedovotto confirmed during the conference that Kering will be looking into the use of Maui Jim’s tech for some of its luxury brands, such as Gucci and Cartier.
The deal also includes the business of Zeal Optics, the sustainable brand of ski goggles and sunglasses acquired by Maui Jim in 2010.
Vedovotto spoke also of the acquired brand’s international potential. At present, he said, Maui Jim generates about 85 percent of its revenues from North America, and the brand does considerable business also in Australia – which, like Hawaii, is a hot spot for surfing. There are, however, two sizeable untapped markets: the rest of Asia-Pacific and Europe. As Vedovotto noted, these are the very markets where Kering and its luxury brands do well.
As the press release reads, “We see strong potential globally for Maui Jim, which will benefit from our expertise and worldwide network to extend its geographical footprint and build on its core values.”
A third selling point was brand loyalty. Here Vedovotto related an anecdote about golfing partners in America whom he could never persuade to buy a pair of Guccis but who were happy to own five pairs of Maui Jims.
The Maui Jim deal follows less than a year after Kering’s purchase of another independent eyewear company with unique know-how, Lindberg. With modular frames and a wide variety of materials – titanium, acetate, buffalo horn, wood, precious metals – this high-end Danish brand offers a high degree of frame customization. It has also patented manufacturing techniques for hypoallergenic, multi-adjustable and screwless frames.
Last month, Kering Eyewear reported external sales of €726 million for 2021. Consolidated revenues – with royalties and intragroup sales excluded but Lindberg’s business included as of the fourth quarter – amounted to €599 million. This reflected a leap in annual revenues of 45.0 percent on a comparable basis from the €399 million of 2020, with eyewear outpacing the rest of the Kering Group’s businesses by 35.2 percent.
Kering Eyewear said that the acquisition would push the company’s annual revenues over the €1 billion mark while further improving profit margins.
Kering Eyewear, founded in 2014 and part of French luxury group Kering, develops and distributes eyewear for a portfolio of 16 brands, which includes the proprietary brand Lindberg as well as Gucci, Cartier, Saint Laurent, Bottega Veneta, Balenciaga, Chloé, Alexander McQueen, Montblanc, Brioni, Dunhill, Boucheron, Pomellato, Alaïa, McQ and Puma.
The Kering luxury group employed about 42,000 and generated revenues of €17.6 billion in 2021.
