In sync with its inorganic growth strategy,
Kohlberg Kravis Roberts & Co.
), the U.S. based private equity firm, entered into a definite
agreement with National Vision, Inc. to acquire the latter from
Berkshire Partners. The deal is expected to close by the end of
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The financial clauses of the deal were not disclosed. However, as
per a Reuters report, a source well acquainted with the matter
divulged that the value of the transaction could amount to more
than $1 billion.
Kohlberg Kravis will finance the deal with its North American XI
private equity fund. Simpson Thacher & Bartlett LLP was the
company's legal advisor for the deal. Further, while
) acted as the financial advisor to National Vision,
Wells Fargo & Company
) was the co-advisor.
National Vision is a leading optical retailer in the country and
specializes in manufacturing cost-friendly contact lenses and
eyewear. The products that are already available at 750 low price
vision centers across U.S. will expectedly become more popular
among customers, given their economic price.
Therefore, National Vision seems to be a lucrative pick for a
company like Kohlberg Kravis that boasts an impressive history of
growth through meaningful acquisitions and mergers. Some of the
latest deals reflect not only the company's global expansion
strategy but also its plans to widen its portfolio to sectors
ranging from software to healthcare.
Kohlberg Kravis posted an earnings beat in the last quarter of
2013, aided by top-line growth. Going forward, we believe that
its strategic investments will continue to drive the top line.
Kohlberg Kravis currently carries a Zacks Rank #3 (Hold). A
better-ranked investment manager is
Waddell & Reed Financial, Inc.
). It currently holds a Zacks Rank #1 (Strong Buy).