NEW YORK--With the purchase on Feb. 29 by Bowling Green, Ky.-based Houchens Industries, Inc. of the franchise division of Cohen’s Fashion Optical, one of the largest optical chains in the U.S., Cohen’s expansion will be accelerated via new franchises as well as potential acquisitions within the next several years, Robert Cohen, president and CEO of Cohen’s told VM.

Houchens, Cohen pointed out, a diversified conglomerate, is one of the country’s largest 100 percent employee-owned (ESOP) firms, with current revenues of almost $2 billion. The company owns some 22 businesses including insurance agencies, recycling companies, construction firms, Web developers, grocery stores and others.

“This move will enable us to finance further expansion under the Cohen’s umbrella, both within the markets in which we currently operate as well as into new territories across the country, as opportunities permit,” Cohen said. “This acquisition truly marks a milestone in the 80-year-plus history of our company.”

The exterior of a Cohen’s Optical store in the Queens Center Mall in Queens, N.Y.

Said Jimmie Gipson, chairman of Houchens, “The acquisition represents an opportunity to further diversify our business operations into a new area and territory.” Spencer Coates, the company’s president, said Houchens “is excited to be working with Cohen management and looks forward to them continuing to manage and grow the business.”

Cohen, who will continue in his current role directing and overseeing daily operations of the business, along with Cohen’s Fashion Optical’s current management team, pointed out that Cohen’s has experienced record double-digit sales gains in the past several years.

“We have been outpacing the industry. We believe that our proven market positioning, the strength of our advertising and marketing and the commitment of our franchisee owners has contributed to our success and there is great opportunity in the market today to build upon that,” Cohen said.

The purchase covers 106 franchised Cohen’s stores in the Northeast and Florida, primarily in the greater New York/New Jersey area. Of those, the Cohen family is retaining 30 franchised optical locations, consisting of 14 Cohen’s Fashion Optical locations as well as 16 General Vision Services (GVS) stores.

Most of the GVS stores will be converted to the Cohen’s Fashion Optical format, a process that has already begun with the conversion of four GVS stores to date, Cohen said. In addition, Cohen’s has opened three new stores this year, including one in Puerto Rico and two in Massachusetts; another in Fairfield, Conn., will open next month and more locations are being explored in New York City and other markets, for a total of about 10 this year, he noted.

“By 2009, we should be expanding at the rate of about 25 stores per year,” according to Cohen.

The 106 stores generated sales of approximately $115 million in 2007, Cohen said. The terms of the cash deal were undisclosed.

The Cohen’s chain was launched in 1924 with a single optical store in New York City; it began franchising in 1978. Prior to the Houchens acquisition, Cohen’s Fashion Optical was owned by brothers Robert Cohen, OD, and Alan Cohen, OD. The Cohen families also own General Vision Services; Alan Cohen is CEO of GVS and Jeffrey Cohen, Robert’s son, is president.

Bob Cohen is also a shareholder of Sterling Optical parent Emerging Vision; Alan Cohen is chairman of that company’s board. ■