Supreme: EssilorLuxottica acquires the cult brand for $1.5 billion

EssilorLuxottica, the optical giant you probably know for its expensive glasses, has just got its hands on Supreme, the streetwear brand loved by cool kids around the world. And guess what? They paid a modest sum of $1.5 billion for this little gem. Yes, you read correctly, 1.5 BILLION!

But wait a second, isn't that a little weird? EssilorLuxottica buying Supreme is a bit like your grandfather suddenly deciding to take up skateboarding, right? We are still talking about a company known for its frames and prescription lenses which is venturing into the world of streetwear. It's as if Rolex decided to start producing socks.

That said, when you think about it, this move could be smarter than it seems. Supreme has built an empire on the concept of exclusivity and desire. Their limited drops create a frenzy comparable to that of Apple fans camping out in front of stores for the latest iPhone. EssilorLuxottica might want to infuse some of that cool magic into its eyewear business.

But let's go back a little. Supreme is not at its first rodeo when it comes to takeovers. Just four years ago, VF Corporation, the behemoth behind brands like Vans, The North Face and Timberland, put $2.1 billion on the table to acquire Supreme. And now they're selling it for 1.5 billion. That’s a net loss of $600 million. Ouch, that hurts the wallet!

One might wonder why VF Corporation is getting rid of Supreme so quickly. Has the brand lost its luster? Or maybe VF Corporation realized that running such a cool brand was beyond its capabilities? Who knows, maybe the board meetings were sorely lacking in skateboarders in hoodies...

Regardless, this acquisition raises a lot of questions. How does EssilorLuxottica plan to integrate Supreme into its portfolio? Are we going to see Supreme glasses for 1000 bucks in all optical stores? Or maybe Supreme will start producing t-shirts with myopic eye designs?

One thing is certain, this acquisition is sure to raise eyebrows (no pun intended) for more than one industry observer. This is a bold bet on the part of EssilorLuxottica, which seems to want to rejuvenate its image and reach a more trendy clientele. It remains to be seen whether this improbable marriage between the world of optics and that of streetwear will bear fruit.

In the meantime, we can bet that Supreme fans will be closely scrutinizing the brand's next moves. Will there be any changes to the brand philosophy? Will the legendary collabs continue? And above all, will the famous red box logo remain intact or will it end up with bifocal lenses?

One thing is certain, this acquisition proves once again that in the world of fashion and business, nothing is impossible. So whether you're a fan of Supreme or have never set foot in one of their stores, keep an eye out for this deal. It promises to be as interesting as a fashion show where all the models wear prescription glasses.

The transaction should be finalized by the end of the year. Until then, if you see hipsters queuing in front of opticians, you'll know why!