Coastal Contacts acquires leading Netherlands contact lens distributor
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
VANCOUVER, Aug. 14 /CNW/ – Coastal Contacts Inc. (TSX: COA) announced today it has acquired the leading on-line distributor of contact lenses and ptical products in the Netherlands, a company operating primarily through the web portal www.MyLenses.nl and having anticipated revenues of CDN$7,000,000 in 2006. The transaction is expected to be accretive from an earnings perspective.
“We believe this transaction has a number of the same fundamentals as the Swedish acquisition of Lensway completed in 2004, and should be a catalyst for additional growth,” states Roger Hardy, Coastal Contacts’ Chairman and CEO. “Lensway has grown over 300% since the acquisition and is the platform upon which Coastal has become the number-one distributor of contact lenses in Europe.”
Daniel Muhlbach, CEO of Coastal Contacts European operations added, “The acquisition of www.MyLenses.nl will increase the momentum of Coastal’s European team. The Netherlands is a very attractive market in terms of population, contact lens usage and acceptance of online purchasing of consumer products. I am also pleased to report that Robert van der Leeuw, founder and managing director of www.MyLenses.nl, has agreed to continue in his role and lead the further development of the business. Robert is a proven entrepreneur who holds a Bachelors Degree in Optometry and brings many years of successful business experience within the optical industry to Coastal, and we are thrilled to have him join our organization.”
Van der Leeuw commented, “The benefits of consolidating our business with Coastal are numerous. I believe that together we can further leverage our marketing, purchasing and logistics capabilities to extend Coastal’s leading position throughout Europe. The industry is moving to another level in which relationships with consumers, eyecare practitioners (ECPs) and major manufacturers will result in the online channel of contact lens distribution becoming mainstream and even more powerful.”
About Coastal Contacts
Coastal Contacts is the world’s fastest-growing contact lens store. The corporation’s large-volume business, combined with its cost-effective distribution hubs in North America and Europe, enable it to offer replacement contact lenses to customers worldwide at reduced prices, delivered quickly with strong customer service follow-up. Coastal’s direct-to-consumer model and single product focus combine to create the distinct competitive advantage of a more efficient, customer-focused model for worldwide contact lens distribution.
This news release contains certain forward-looking statements that reflect the current views and/or expectations of Coastal Contacts Inc. with respect to its performance, business and future events. Investors are cautioned that all forward-looking statements involve risks and uncertainties including, without limitation, those relating to changes in the market, potential downturns in economic conditions, limited suppliers, inventory risk, disruption in our distribution facilities, foreign exchange fluctuations, regulatory requirements, demand for contact lenses, competition and dependence on the internet. These risks, as well as others, could cause actual results and events to vary significantly. Coastal Contacts does not undertake any obligations to release publicly any revisions for updating any voluntary forward-looking statements.
Neither the TSX nor any other regulatory body has reviewed and therefore does not accept responsibility for the adequacy or accuracy of this release.
For further information: visit www.coastalcontacts.com or contact: Bill Wrixon, President, Coastal Contacts Inc., (604) 669-1555, Ext. 251, billw@coastalcontacts.com; Terry Vanderkruyk, Vice President, Corporate Development, Coastal Contacts Inc., (604) 669-1555, Ext. 326, terryv@coastalcontacts.com