Oakley acquires Oliver Peoples

Oakley has announced the acquisition of privately-held Oliver Peoples, one of the world's most recognized and most respected luxury eyewear companies, and its subsidiaries. As a result of the acquisition, Oakley has acquired Oliver Peoples' three eyewear brands: Oliver Peoples, Mosley Tribes, and the licensed Paul Smith eyewear brand.

'Oakley's core business is optics and this will be a focus of our long-term strategy', said Scott Olivet, Oakley chief executive officer. 'While growing Oakley eyewear is our first priority, we also believe that we can capitalize on complementary consumer and market segments with a multi-branding approach. This will enable us to leverage our capabilities in optics, design, and manufacturing without compromising the Oakley brand's authenticity'.

'The acquisition of Oliver Peoples, Mosley Tribes and the Paul Smith license is a tremendous start in the creation of a targeted portfolio of brands. Their position in the fashion eyewear market complements Oakley's leadership in sport performance and active eyewear', continued Olivet. 'The brands will access different consumers, distribution channels, and design inspiration while simultaneously benefiting from shared experience, capabilities, and resources'.

'We are very enthusiastic about working with Oakley, the worldwide leader in performance eyewear, and the opportunity to grow our existing luxury eyewear business', said Larry Leight, chief executive officer and chief design officer of Oliver Peoples. 'Together, we will have enhanced resources to further build our brand, expand our strong retail relationships and strengthen our operational capabilities'.

The acquisition's aggregate purchase price of up to $55.7 million, subject to post closing adjustments, includes the assumption of approximately $5.0 million of debt and up to $4.0 million in earn-out incentives. Oakley expects the acquisition to be slightly accretive to earnings in 2006.