FOOTHILL RANCH, Calif. Sunglasses designer Oakley Inc. has agreed to acquire Iacon Inc., a closely held sunglass retailing chain, in a move to get more shelf space for its products.
Terms were not disclosed.
Iacon, based in Scottsdale, Ariz., operates about 40 mall-based sunglasses stores nationwide. It operates under the Sunglass Designs, Sporting Eyes and Occhiali da Sole names. Iacon had revenue of about $15 million for the 12 months ended Aug. 31, of which Oakley accounted for about 26 percent. The purchase is expected to close by the end of October.
Oakley hopes the acquisition will fill its need for new retail venues. In August, Oakley, which makes avant-garde sunglasses sported by athletes such as cyclist Lance Armstrong and motocross racer Ricky Carmichael, suffered a setback when Sunglass Hut, its biggest distributor, said it would no longer offer Oakley shades at its thousands of stores.
While Oakley has diversified in recent years into shoes, apparel and other items, sunglasses still represented the bulk of the company's $425 million in revenue for the 12 months ended in June. And 25 percent of its revenue was rung up on Sunglass Hut registers.
The loss of Sunglass Hut was expected to hurt Oakley's earnings for the next year as the company seeks other retail venues. The news also hammered Oakley's stock price at the time.
Monday morning, shares of Oakley climbed 76 cents, or 7.1 percent, to $11.46 on the New York Stock Exchange.
Oakley, based in Foothill Ranch, Calif., had fiscal 2001 revenue of about $363.5 million.
The sunglasses company on Monday said Iacon's founder and president, Jeff Obstfeld, will join Oakley and oversee the day-to-day operations of Iacon's retail operations. Iacon's current management team also will remain intact.