BARCELONA -- Indo Internacional S.A. and Belgian-based Buchmann Optical Holding N.V. have signed a letter of intent to merge their respective equipment businesses, creating what the two companies describe as “the new world leader in optical equipment.”

Buchmann is a multinational company that produces and distributes machinery and diagnostic equipment for opticians and ophthalmologists under three leading trademarks: Briot, WECO and Rodenstock Instruments. According to the agreement, the companies’ respective equipment units will be merged to form a new company. Indo would take over 100 percent of Buchmann’s current business in approximately three years.

The statement indicated that Buchmann is currently ranked second in the world ranking of manufacturers and distributors of optical machinery; Indo ranked fourth. Turnover of Indo’s equipment unit for the 2007 financial year was €39.4 million, whereas Buchmann’s consolidated and audited figure for 2007 was €73.5 million.

The merger agreement provides for the creation of a new company that will form part of the Indo Internacional, S.A. group and in which the current shareholders of Buchmann Optical Holding will hold shares. In coming months, the two companies said they will be working together to formalize the corresponding agreements and thereby complete the merger. Based on these agreements, Indo may take over 100 percent of the new company in about three years time, subject to certain conditions.

“Over and beyond the two firms’ turnover figures, the company resulting from the merger will become the new world leader in equipment for the optical industry, given its advanced technological level, the soundness of the brands in question, the extremely broad coverage of its distribution network and the highly skilled service provided to opticians,” explained Juan Casaponsa, executive president of Indo.

Indo, based here, is involved in the manufacture and sales of ophthalmic lenses, frames, sunglasses and equipment for opticians and ophthalmologists. It also offers comprehensive interior design and installation services for opticians’ and ophthalmologists’ shops and offices. With more than 70 years’ experience in the optical industry, Indo leads the Spanish market and exports its products to more than 80 countries.

Buchmann is headquartered in Kapellen (Belgium). It exports to more than 75 countries. ■