Private Equity Giant KKR & Co. has agreed to buy 1-800 Contacts from AEA Investors. Thanks in large part due to its online ordering system and direct to consumer delivery, 1-800 Contacts became the largest seller of contact lens in the USA.
The company has continuously built upon its history of innovation to expand its business. For example, the company started ExpressExam, an app-based system which lets customers renew their contact lens prescription online within minutes.
Boosted by stay-at-home orders, the pandemic bought 100% year-over-year increase in returning and new consumers. The usage of ExpressExam increased by 200% and Rx Reader (another app they provide) saw a 700% increase in monthly users.
When asked about the deal, Felix Gernburd, KKR Managing Director said, "We believe 1-800 Contacts' singular focus on providing a consistent and high quality customer experience, fueled by industry-leading capabilities and telemedicine solutions, positions them well to continue to drive innovation in the category."
The deal reportedly values the company at over $3 Billion.