VSP Vision in Advanced Talks to Acquire PAI-Backed Italian Eyewear Manufacturer Marcolin

VSP Vision in Advanced Talks to Acquire PAI-Backed Italian Eyewear Manufacturer Marcolin VSP Vision, the US-based optical services group that owns Marchon Eyewear, is in advanced negotiations to acquire Italian eyewear manufacturer Marcolin SpA, currently backed by private equity firm PAI Partners.

Marcolin, headquartered in Longarone, Italy, is a well-established manufacturer that produces proprietary and licensed eyewear under brand names such as Tom Ford, Adidas, Skechers, Christian Louboutin, Guess and more. As of 2022, the company posted annual revenues of approximately €547 million (approx. A$975 million), with consistent growth over the decade with the exception of the pandemic impact felt in 2020.

In recent months, PAI Partners has been exploring a sale of Marcolin and targeted a valuation of around €1.3 billion (approx. A$2.3 billion). Prospective buyers reportedly included industry heavyweights such as Kering, EssilorLuxottica, Safilo, De Rigo, and Marchon Eyewear of the US, as well as private equity interest from FountainVest Partners.

For VSP Vision, acquiring Marcolin could significantly enhance its manufacturing portfolio, potentially expanding its global reach in branded and licensed eyewear. Marchon, already a VSP subsidiary since its 2008 acquisition, would likely see synergies in combining with Marcolin’s capabilities and distribution network.

However, the deal remains in advanced talks and is not yet finalised. The outcome hinges on several factors, including due diligence, regulatory approval, and negotiations over valuation and governance structure.

Industry Implications:

Consolidation of eyewear giants: If completed, this acquisition would mark another major consolidation in the eyewear industry, reshuffling competitive dynamics between global manufacturers and retailers.
Vertical integration benefits: VSP Vision, known principally for its vision-care insurance business and in-house labels such as Altair, would gain expanded manufacturing muscle, strengthening its downstream integration from design to retail.
Private equity exit for PAI: For PAI Partners, a sale would represent a profitable exit from a long-held investment, offering a tangible return on the growth trajectory of Marcolin across the past decade.

UPDATE: Marcolin confirms the acquisition of Marcolin by VSP Vision. The company stated: "Marcolin is pleased to announce that PAI Partners and other minority shareholders have agreed to sell the Marcolin Group to VSP Vision. The acquisition of Marcolin will mark a significant eyewear investment by VSP Vision to provide even more value to its stakeholders."