ESLOY Essilor Luxottica (PK)

By Inti Landauro

PARIS--French lenses maker Essilor SA (EI.FR) Monday said it had agreed with U.S.-based partner PPG Industries Inc. (PPG) to buy the 51% stake in Transitions Optical it didn't own and 100% of sun lenses maker Intercast for a total of $1.86 billion.

Both companies founded Transitions in 1990 and the joint-venture generated $814 million revenue in 2012, of which around $310 million was generated with manufacturers other than Essilor.

Essilor had announced it had started exclusive negotiations with its partner for the acquisition in January. The French company will pay $1.73 billion at the closing of the transaction and $125 million over the next five years as deferred payment.

Write to Inti Landauro at inti.landauro@dowjones.com

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