VSP Buys Marchon for $735 Million, Creating $3.3-Billion Eyecare Company

RANCHO CORDOVA, Calif.–On Friday, Vision Service Plan (VSP) took over ownership of Marchon Eyewear, after acquiring the eyewear manufacturer/distributor the day before for $735 million, funded by a combination of cash and debt. The acquisition creates a new combined entity with projected revenues of $3.3 billion this year; puts VSP’s Altair Eyewear operation under the umbrella of Marchon, now a wholly owned subsidiary of VSP; and melds VSP’s Eyefinity Internet portal with Marchon’s OfficeMate Software Solutions practice-management operation into a new “eyecare business solutions organization.”

As part of the transaction, VSP will also acquire Marchon’s 50-percent ownership of Eye Designs, which designs custom interiors and merchandising systems for the optical industry.

The VSP spokesman said Marchon’s licensors have approved the transaction; the acquisition has also received required regulatory approval from the California Department of Managed Care and the Connecticut Department of Insurance. Several months ago, VSP filed with those bodies for approval of a deal described in the filings as the $700-million acquisition of “all of the outstanding stock of a vision care company.” In those filings, VSP said it had entered into a definite agreement on April 30 to acquire the then-unnamed company.

For exclusive details on both VSP’s and Marchon’s operations, visit www.visionmonday.com.

Reprinted in part courtesy of Vision Monday