The Optical Shop of Aspen (OSA) is on the verge of raising the number of its high-end eyewear operations from 15 to 23. The retailer, which was recently acquired by Oakley, is finalizing a deal with an outlet in East Hampton, New York, called The Visionary, that would turn the outlet into an OSA door. In August, OSA bought Rare Optics, a store in Aspen, Colorado. This shop will be turned into an Emporio Optic, one of OSA's banners. Also in August, OSA acquired 9026 Eyes, a boutique in Malibu, California, frequented by Hollywood celebrities. Meanwhile leases for three new locations in the Phoenix area of Arizona have been signed, along with another lease in Palm Springs, California. These four new outlets will be opened in 2007.
In the midst of this expansion process, which is being conducted by Larry Sands, chief executive and former owner of OSA, a 10Q report filed with the U.S. Securities and Exchange Commission discloses previously unreleased information about Oakley's purchases of OSA as well as Oliver Peoples. The company paid $53.2 million, including $51.7 million in cash, for Oliver Peoples, along with $3 million in additional cash if the company achieves certain financial performance targets after the acquisition. The takeover of OSA originally cost Oakley $30.4 million, with $26.6 million paid in cash, but $3 million was held back ?to pay contingent indemnification charges,? according to the report. Similar to the Oliver Peoples acquisition, Oakley will pay an extra $3.5 million in cash to the former owners of the chain if it achieves certain performance targets.