Luxottica Group purchases Oakley for 2.1 Billion

Luxottica Group S.p.A. (NYSE: LUX) announced their 2.1 billion dollar buyout of sunglasses maker Oakley (NYSE: OO) for $29.30 per share today sending both shares skyrocketing up. Owner of fashion eye-wear brand Ray-Ban and distributor of luxury brands such as Dolce & Gabbana, Prada, and Chanel, Luxottica plans to dive into the upscale sports eyewear market with its latest acquisition.

Based on the latest releases of Oakley shades, both for men and women, there was a clear directional shift in the look from sporty to fashionable. The summer 2007 line of Oakley women's sunglasses not only featured big-lensed glasses, but also touted an arsenal of fashionable frames and styles very far from the traditional sporty look.

Due to the extreme market saturation in high end fashionable eye-wear, a strategic diversification into athletics-based background may yield higher growth in the future.