(The author is a Reuters Breakingviews columnist. The opinions expressed are their own.)
MILAN (Reuters Breakingviews) – Glasses and lenses retailer Synsam is being suitably modest. The Scandinavian optician, which runs 490 stores, is listing its shares https://www.synsamgroup.com/wp-content/uploads/2021/10/Synsam-AB-publ-Prospectus.pdf at between 46 and 56 Swedish crowns each. The top of that range gives a market value of 8.4 billion Swedish crowns, or close to $1 billion. Including debt, that’s roughly 9 times its projected 2022 EBITDA of 1.3 billion Swedish crowns, in line with Dutch retailer GrandVision, a rival in the hypercompetitive Nordic market.
Synsam hopes its well-oiled subscription model will expand annual sales by 12% and boost EBITDA margins to above 25%. Yet it’s not the only one in that game. Furthermore, $86 billion market leader EssilorLuxottica, which is buying GrandVision, is a worry. While eyewear distribution is fragmented, suppliers of glasses are harder to find. Even though Synsam sells some in-house models, Leonardo Del Vecchio’s giant is a major producer of lenses and branded frames. Where EssilorLuxottica goes, Synsam will likely follow. (By Lisa Jucca)
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