Monarch Alternative Capital to sell Shopko Optical to Fielmann Group

Monarch Alternative Capital LP, a prestigious investment firm overseeing more than $14 billion in assets, has finalized a deal to sell Shopko Optical to the Fielmann Group, a top global eyewear provider. This significant transaction, valued at $168 million, marks a pivotal move in the optical retail sector and is slated to conclude in the third quarter of this year, pending standard closing conditions and regulatory approvals.

Strategic Move in Optical Retail

Shopko Optical, with a robust presence through over 140 stores across 13 U.S. states, emerged as a standalone entity in 2019 after Monarch Alternative Capital LP acquired 80 optical units during Shopko Stores, Inc.’s bankruptcy sale. Shopko Stores, Inc., a former discount department store chain based in Wisconsin, filed for bankruptcy in January 2019. Recognizing the intrinsic value, Monarch leveraged this opportunity to carve out a profitable segment from the broader Shopko enterprise.

Under Monarch’s guidance, Shopko Optical not only transitioned from store-in-store formats to freestanding outlets but also nearly doubled its store count over five years, expanding into new states. This strategic expansion was driven by the dedicated management team and the ongoing secular growth trends in the U.S. optical industry.

Statements from Leadership

Russ Steinhorst, CEO of Shopko Optical, praised Monarch’s support, stating, “Monarch Alternative Capital has been a fantastic partner and advocate of Shopko Optical over the last five years. They saw the potential early on and fully supported the team as it executed the initial establishment of the company and carveout of 80 locations, followed by resources and guidance to grow to the 145 locations we have today.”

Ian Glastein, Managing Principal at Monarch and Chairman of the Shopko Optical Board of Directors, expressed his satisfaction with the company’s growth, saying, “We are delighted to have witnessed incredible growth in the Shopko Optical business over the past five years, thanks to the dedicated partnership with our outstanding management team.”

Industry Impact and Future Outlook

The sale of Shopko Optical to the Fielmann Group signifies a strategic alignment in the optical sector, promising to enhance service offerings and market reach. This acquisition will likely serve as a growth catalyst, enabling further expansion and innovation in eyecare services.

The involved financial and legal advisors, Jefferies LLC and Kirkland & Ellis LLP respectively, played pivotal roles in facilitating this high-profile transaction, ensuring a smooth transition and promising a bright future for Shopko Optical under the new ownership of the Fielmann Group.

The acquisition of Shopko Optical by the Fielmann Group represents a well-strategized move in the evolving optical retail market. This deal not only underlines the attractiveness of specialized retail sectors but also demonstrates the potential for substantial growth through strategic acquisitions. As the industry continues to expand, such partnerships are expected to drive innovation and market expansion.