EssilorLuxottica to move into hearing aids after buying Israeli start-up

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EssilorLuxottica, the world’s largest eyewear group, is to expand into the hearing aids market by developing lenses fitted with acoustic technology.

The Franco-Italian group, created through a €50bn merger in 2017 of the late Leonardo Del Vecchio’s eyewear group Luxottica and French lens manufacturer Essilor, acquired Israeli hearing technology start-up Nuance Hearing in late 2022, to develop glasses fitted with its acoustic beamforming technology.

Nuance’s technology is particularly effective in cancelling out background noise, as well as enhancing and directing audio focus, according to its website. The EssilorLuxottica hearing aid eyewear, which will look like regular glasses, will address the issues of customers suffering mild to moderate hearing loss.

According to estimates, more than 1bn people worldwide suffer from this level of hearing impairment and many also have sight issues, a combination that has the potential to further expand EssilorLuxottica’s global market.

“While sight remains our core business . . . we are uniquely positioned to open up a new avenue for the industry by addressing the need for good hearing with innovative technologies,” said EssilorLuxottica chief Francesco Milleri. “We will be the first to remove the stigma of traditional hearing solutions, replacing it with comfort and style.”

The move is the first significant strategic change for the group since its founder’s Del Vecchio’s death last summer, aged 87. It is also the first time since the merger, mired at the time by suggestions of tensions between the founder-run Luxottica and the public French company, that the €80.5bn group has expanded into a new business sector.

Del Vecchio suffered from hearing loss himself and often complained that traditional hearing aids were not comfortable to wear with eyeglasses. Milleri — Del Vecchio’s closest confidant — and Leonardo Del Vecchio, the youngest of the tycoon’s five children and as group chief strategy officer the only direct heir to work for it, were both inspired by the founder’s experience, according to people familiar with the plan.

The acoustic aid glasses are expected to be launched next year, and the company intends to work with traditional hearing aid companies to market the product. It also plans to make the glasses available across its distribution channels and optic wholesalers in 150 countries.

EssilorLuxottica said on Tuesday after the market close that revenue in the first half of the year rose 8.2 per cent year on year to €12.85bn. Net profit rose 9 per cent to €1.65bn over the same period.

The Paris-listed group reported a record €24.5bn in sales last year, up almost 14 per cent on the previous year.