Altra is a Wholly Owned Subsidiary of Shamir
KIBBUTZ SHAMIR, Israel, July 1 /PRNewswire-FirstCall/ -- Shamir Optical Industry Ltd. (Nasdaq: SHMR) ("Shamir"), a leading provider of innovative products and technology to the lens market, announced today that it has signed an agreement yesterday, June 30, 2008, pursuant to which it has purchased 49% of Altra Trading GmbH ("Altra") from its minority shareholder. Prior to this transaction, Shamir held 51% of the share capital of Altra, and upon consummation of the transaction, Altra became a wholly owned subsidiary of Shamir.
Under the terms and conditions of the agreement, Shamir will pay an amount derived from Altra's consolidated net profit for the fiscal years ending December 31, 2008, 2009 and 2010, not to exceed the total amount of Euro 500,000. In addition, Shamir has undertaken to guarantee the repayment by Altra of the loans it received from the minority shareholder from time to time, as well as the interest on such loans. The loans will be repaid in several payments to commence on the date of the closing of the transaction, with the final payment to be paid on June 30, 2011.
"We would like to thank our departing partner for his productive work, loyalty and dedicated service to Altra, and we wish him well in his future endeavors," said Eyal Hayardeny, chief executive officer of Shamir.
Mr. Hayardeny concluded, "I am pleased to announce the completion of this very important transaction. We are confident that it will enable us to better control and manage our European operations. Shamir is committed to increasing its footprint in Europe and it continues to make appropriate investments in leadership, marketing and sales."
Altra is a German distributor and holding company through which Shamir holds all of its European subsidiaries, and through which it markets and sells its products. Sales through Altra accounted for approximately 56% of Shamir's total sales in 2007. Altra has subsidiaries in Portugal, Spain, France, Turkey and the United Kingdom.
Shamir is a leading provider of innovative products and technology to the lens market. Utilizing its proprietary technology, the company develops, designs, manufactures, and markets progressive lenses to sell to the ophthalmic market. In addition, Shamir utilizes its technology to provide design services to optical lens manufacturers under service and royalty agreements. Progressive lenses are used to treat presbyopia, a vision condition where the eye loses its ability to focus on close objects. Progressive lenses combine several optical strengths into a single lens to provide a gradual and seamless transition from near to intermediate, to distant vision. Shamir differentiates its products from its competitors' primarily through lens design. Shamir's leading lenses are marketed under a variety of trade names, including Shamir Genesis(TM), Shamir Piccolo(TM), Shamir Office(TM), Shamir Smart(TM) and Shamir Autograph(TM). Shamir believes that it has one of the world's preeminent research and development teams for progressive lenses, molds, and complementary technologies and tools. Shamir developed software dedicated to the design of progressive lenses. This software is based on Shamir's proprietary mathematical algorithms that optimize designs of progressive lenses for a variety of activities and environments. Shamir also has created software tools specifically designed for research and development and production requirements, including Eye Point Technology software, which simulates human vision.
Safe Harbor Statement
Statements concerning Shamir's business outlook or future economic
performance; product introductions and plans and objectives related
thereto; and assumptions made or expectations as to any future events,
conditions, performance or other matters, are "forward-looking statements"
as that term is defined under U.S. federal securities laws. Forward-looking
statements are subject to various risks, uncertainties and other factors
that could cause actual results to differ materially from those stated in
such statements. These risks, uncertainties and factors include, but are
not limited to: The conflicts in the region; the effects of competition in
our industry, and changes in our relationships with optical laboratories,
distributors, research and development partners and other third parties;
the effects of the international expansion of our operations and our
ability to manage our growth, including our ability to manage potential
future acquisitions; the effect of global economic conditions in general
and conditions in Shamir's industry and target markets in particular;
shifts in supply and demand; market acceptance of new products and
continuing products' demand; the impact of competitive products and pricing
on Shamir's and its customers' products and markets; timely product and
technology development/upgrades and the ability to manage changes in market
conditions as needed; interest rate fluctuations; and other factors
detailed in Shamir's filings with the Securities and Exchange Commission.
Shamir assumes no obligation to update the information in this release.
Investor Relations Contacts:
Roni Gavrielov Jeffrey Goldberger/Marybeth Csaby
KM / KCSA Investor Relations KCSA Strategic Communications
|SOURCE Shamir Optical Industry Ltd.|
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