Baloncici Following EssilorLuxottica Société Anonyme's ( OTCPK:ESLOF , OTCPK:ESLOY ) agreement for two new bolt-on acquisitions, we are back to comment on the company today. Here at the Lab, we have been positive on EssilorLuxottica, recognizing the player as a perfect combination between Value And Growth ; however, we recently downgraded the company with a publication called No More Upside . Our rating change was supported by no upgrades on earnings post-Q1 results and a less attractive valuation than in the past.
In addition, even if we recognize a positive stance on the Nuance Audio acquisition, the company did not disclose financial targets, and our updated sales projections estimate was only a fraction of the total company's turnover. M&A Update Before the Paris stock exchange opening bell, the Italian-French eyewear giant communicated a double acquisition. The company invested in the American streetwear brand Supreme, acquired from the fashion conglomerate VF, and 80% equity stake acquisition of Heidelberg Engineering.
This German company specializes in diagnostic solutions, digital surgical technologies, and IT solutions for clinical ophthalmology. Supreme’s time under the VF conglomerate came to an end. In number, EssilorLuxottica acquired the company for a total consideration of $1.
5 billion. Related to the Supreme deal, there are two high-level considerations to report: VF is a fashion conglomerate with brands such as Timberland, Vans, Eastpak, Northface, and .
