Article

Non-profit Vision Service Plan acquires Marchon for $735M

Non-profit vision care benefits provider Vision Service Plan (VSP) has acquired Melville, NY-based eyewear manufacturer/distributor Marchon Eyewear Inc. for $735 million.

Key Points

Rancho Cordova, CA-Non-profit vision care benefits provider Vision Service Plan (VSP) has acquired Melville, NY-based eyewear manufacturer/distributor Marchon Eyewear Inc. for $735 million.

Under the terms of the agreement announced last month, Marchon will become a wholly owned subsidiary of VSP. Al Berg, Marchon president and chief executive officer (CEO), and Larry Roth, executive vice president of Marchon, along with the Marchon global team will continue in their current roles. Marchon will operate from its New York-based headquarters as an independent entity within the VSP organization.

Altair Eyewear, VSP's for-profit eyewear company, will become a division of Marchon but remain in its Rancho Cordova headquarters. Similarly, VSP's Eyefinity Internet portal will unite with Marchon's OfficeMate Software Solutions practice-management system for a new eye-care business solution. VSP also will acquire Marchon's 50% ownership interest in Eye Designs, which creates custom interiors and merchandising systems for the optical industry.

Marchon manufactures and sells branded and proprietary eyewear and sunwear for such brands as Calvin Klein, Coach, Emilio Pucci, FENDI, Jil Sander, Karl Lagerfeld, Michael Kors, Nautica, Nike, Oscar de la Renta, Sean John, and X Games. The company also manufactures its own collections of eyewear.

VSP, with 55 million members, is the United States' largest eye-care benefits provider.

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