Exhibit 99.1
Oakley Agrees to Acquire Eye Safety Systems, Inc.
Acquisition Expands Company's
Military Optics Business
FOOTHILL RANCH, Calif., Nov. 22,
2006 (PRIMEZONE) -- Oakley, Inc. (NYSE:OO) today announced it has
signed a definitive agreement to acquire essentially all the assets
of Eye Safety Systems, Inc. (ESS), one of the world's largest
suppliers of military, law enforcement and firefighting protective
eyewear, for $110 million cash.
"This acquisition represents
another major step for Oakley in our strategy to accelerate growth
in our core optics business," said Scott Olivet, chief executive
officer, Oakley, Inc. "ESS's brand and company reputation, strong
goggle business, and breadth of distribution across military, fire
fighting and law enforcement channels complement our existing
military eyewear platform.
"Oakley is at its best when we
work to solve the most difficult problems of the world's most
demanding users -- the exact same thing can be said of ESS,"
continued Olivet. "By joining forces, we are combining two
individually strong brands with remarkably similar core values,
enhancing both of our abilities to provide the best product and
highest quality service possible."
"This represents an exceptional
and timely opportunity for both ESS and Oakley. We believe that
Oakley's design excellence, financial resources and international
infrastructure will allow ESS to significantly expand its presence
in the global protective eyewear markets," said John Dondero,
founder and president, Eye Safety Systems, Inc. "Our management
team is enthusiastic about this transaction and believes this
combination is an excellent step forward for our customers,
employees, and most importantly the military, fire fighting and law
enforcement professionals who rely daily on our eye protection
equipment in their challenging work environments."
"We are extremely proud of our
military heritage and excited to combine a shared commitment to
product research and development, advanced technology and excellent
support for this important channel," said Erick Poston, military
business unit manager, Oakley, Inc. "ESS enables us to create a
much broader product and distribution platform capable of enhancing
service to our existing customers and creating potential for future
growth."
The acquisition's $110 million
cash purchase price is subject to certain indemnities and
post-close adjustments. Subject to customary closing conditions,
the company expects the acquisition to be closed during the first
half of 2007. Upon closing, the company expects the acquisition to
be immediately accretive and estimates a partial year contribution
of approximately $30 million to sales and approximately $0.05
earnings per share in 2007. Dondero will continue to lead the
development and expansion of the business as its
president.
About Eye Saf
