Italian eyewear producer Luxottica Group S.p.A. and California-based performance eyewear, apparel and footwear company Oakley, Inc. have entered into a definitive merger agreement with the unanimous approval of both companies’ boards of directors. Under the agreement, Luxottica will acquire all of Oakley’s outstanding shares for a total purchase price of approximately $2.1 billion. The transaction is expected to close in the second half of 2007.

Luxottica Group has over 5,800 optical and sun retail stores in North America, Asia-Pacific, China and Europe and its brand portfolio includes Ray-Ban, Burberry, Dolce & Gabbana, Donna Karan, Polo Ralph Lauren and Versace.