Luxottica to Buy Sunglass Hut for $462 Million

Luxottica Group said it will buy Sunglass Hut International Inc. for about $462 million, a deal that will wed the Italian eye wear maker’s existing prescription business in North America with sunglasses. Luxottica will pay $11.50 a share for Coral Gables, Fla.-based Sunglass Hut, which operates 1,962 stores worldwide, and assume about $191 million in debt, the companies said. Sunglass Hut represents around one-third of the premium sunglasses market in the U.S., Wachovia Securities retail analyst David Buchsbaum estimated. News of the deal sent Sunglass Hut shares up $3, or 36%, to close at $11.31 on Nasdaq. Meanwhile, investors fretting over what effect the sale might have on Oakley Inc. shaved almost 13% off the Foothill Ranch sunglass maker’s stock. Last year, sales to Sunglass Hut accounted for 21% of Oakley’s business. Oakley shares fell $2.45 to close at $16.65 on the NYSE. Oakley said it expects business would continue as usual under new ownership.