Projo Biz Blog

FGX International (FGXI: NASDAQ) said this afternoon it has purchased a privately held California company that makes sunglasses and optical accessories for $35 million in cash and about 1 million FGX stock shares.

The acquisition of Dioptics Medical Products Inc. "is a natural fit for FGX International," said Alec Taylor, FGX's chief executive officer. "The addition of this product line complements our existing product portfolio, accelarates our strategic growth initiatives and strengthens our competitive position."

FGX International is a subsidiary of a year-old public company, FGX International Holdings Ltd., of Tortola, British Virgin Islands. FGX International employs 400 people, 350 of whom are based in Smithfield.

FGX designs and sells sunglasses, reading glasses and costume jewelry.
FGX is the descendant of Femic Inc., which started in 1971 as a Providence manufacturer of costume jewelry. The company sold jewelry and consumer goods for years before changing its name to Accessories Associates in 1986, and to AAi.FosterGrant a decade later, when it bought the long-established sunglasses brand.

This year, the reorganized company is on steady financial ground after its initial public offering last October and looks forward to net sales of more than $255 million, up about 6 percent from last year. Net sales then were $240.5 million, a 15-percent increase from 2006 sales of $209.2 million.

The revenue comes from selling nearly 70 million pairs of eyewear annually under brands such as FosterGrant, Magnivision, Body Glove, Ironman Triathlon, Levi Strauss Signature and others names.

Manufactured in factories overseas, the eyewear is sold in more than 50,000 retail locations, including mass merchandiser Wal-Mart, drugstore chain CVS and other outlets.

In a September interview with The Journal, Taylor said he and other FGX executives also will look to buy eyewear brands that fit into the company's strategy of offering lower-priced eyewear sold through retailers.

"Acquisitions are a part of the growth strategy," he said.

Dioptics sells products under the SolarShield and PolarEyes brand names and a portion of its $33 million in sales during a fiscal year that ended Sept. 30 came in the medical sector, a sales channel FGX had yet to enter.

 Tags  Diptics FGX FosterGrant

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