The $2.1 billion sale of Foothill Ranch’s Oakley Inc. to Luxottica Group SPA of Italy brings together two companies that started the decade at odds with each other.
In the early 2000s, Luxottica roiled Oakley by cutting the number of the company’s sunglasses sold at Sunglass Hut just after Luxottica bought the mall chain in 2001.
Oakley shot back with a lawsuit accusing Luxottica of selling knockoffs of its sunglasses at Sunglass Hut.
By late 2001, the companies settled and Oakley resumed sales through Sunglass Hut.
These days, Oakley has moved closer into Luxottica’s world by building up its own stores that sell sunglasses and trendy glasses for prescription lenses.
Luxottica, which counts yearly sales of $5 billion, designs and makes upscale eyeglasses frames and sunglasses. It also sells upscale frames from Chanel, Prada and others through its retail arm, which includes Sunglass Hut and the LensCrafters and Pearle Vision chains.
Oakley, with yearly sales of about $920 million, is known for sunglasses worn by jocks, cops and others. In the past year, the company has moved into fashion glasses sold through its own stores.
Last year, Oakley paid $53 million to buy Los Angeles-based glasses retailer Oliver Peoples and $30 million for Aliso Viejo-based luxury glasses seller Optical Shop of Aspen.
Oakley’s growing retail operation likely appealed to Luxottica, which made its offer for Oakley late Wednesday night.
The two companies share something else in common: dominant owners.
Oakley founder and Chairman Jim Jannard owns about 64% of the company, a stake worth about $1.3 billion in the buyout.
Luttottica founder Leonardo Del Vecchio owns about 70% of his company.
The deal, the biggest yet this year for an Orange County company, is set to close in the second half of the year.
