Unrelenting vision through heritage and technological innovation

: a possible merger of Fielmann AG & Mister Spex SE

Abstract

The eyewear industry is undergoing significant change, driven by technological advances and evolving consumer preferences. Eyewear has moved beyond its traditional medical function to become an important fashion statement, driving a dynamic and complex market environment, supported by demographic trends. As a result, companies must adapt quickly to remain competitive, and mergers and acquisitions (M&A) have emerged as a key strategy to achieve this. This dissertation investigates the strategic implications and economic benefits of a potential merger between Fielmann AG and Mister Spex SE. The focus is on the valuation of both companies and critically evaluates the associated risks and synergies. By employing Discounted Cash Flow (DCF) and Comparable Company Analysis (CCA) methodologies, the offer price for Mister Spex is determined to be EUR 9.42 per share, implying an Enterprise Value of EUR 296m. This valuation suggests a substantial upside potential compared to the current market price, justifying a significant acquisition premium. The analysis identifies key synergies, including an expanded product range and cross-selling opportunities, which collectively add a net value of EUR 157.5m. Together with the stand-alone value of the merged entity, the value of the combined firm amounts to EUR 6,388.7m. The merger, primarily financed through a combination of cash and senior-secured debt, is projected to be dilutive initially but accretive from 2026 onwards, promising a solid generation of shareholder value.

Date of Award	22 Oct 2024
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	António Assunção (Supervisor)