Essilor has entered into an agreement with Coastal Contacts Inc. to acquire Coastal.com, a transaction worth about $430 million.
The purchase price of $12.45 per share to be paid by Essilor represents a premium of 43% over the three-month average price for Coastal.com on the TSX ($8.73) and 84% over the six-month average price ($6.78).
Essilor shares Coastal.com's focus on customers, innovation and growth, said Roger Hardy, Coastal.com's founder and CEO. The combination will enhance Coastal.com's ability to achieve its goals while realizing a significant all-cash premium for our shareholders. I am confident this transaction is the right decision for Coastal.com, our employees and our shareholders.
The agreement remains to be approved by shareholders and the relevant authorities. It has already been unanimously approved by the Board of Directors. Since the sale has not yet been completed, the Board could receive a better offer from another buyer, in which case Essilor would have the right to match the new offer. The transaction is expected to close in the second quarter of 2014.
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