New Look Vision Group Inc. has agreed to acquire Iris, le groupe visuel (1990) Inc. for $120 million, significantly enhancing its position in the Canadian optical industry.

Target Information

New Look Vision Group Inc. has announced its definitive agreement to acquire all issued and outstanding shares of Iris, le groupe visuel (1990) Inc. Founded in 1990 by Dr. Francis Jean in Baie-Comeau, Quebec, Iris has grown into a premier retail eye care provider across Canada, boasting a network of 150 locations, which includes 53 corporate entities, 77 jointly owned, and 20 franchise locations. The vastly recognized Iris brand operates predominantly in Quebec (82 locations), British Columbia (36), Alberta (16), Ontario (15), and New Brunswick (1). For the twelve months ending September 30, 2016, Iris reported adjusted pro forma system-wide revenues of approximately $110 million, with consolidated revenues in that same period reaching about $60 million.

Industry Overview

The Canadian optical industry is experiencing a significant transformation characterized by increased consumer demand for integrated eye care services. The ongoing trend of consolidation among optical retailers enhances competitive dynamics, as firms seek to maximize market efficiency and leverage economies of scale. Recent years have shown a shift towards more personalized eye care experiences, driven in part by advancements in technology and a growing awareness of eye health among Canadians.

Factors such as an aging population and a rise in digital screen usage have contributed to a rising prevalence of vision-related issues, thereby driving the demand for optical services. Retailers like Iris that offer a combination of professional service