New Look Eyewear has purchased Charlottetown-based Vogue Optical Inc. for $74 million, in a move that will make it the third-largest integrated optical retailer in Canada.

Vogue, founded in 1979 by Wayne and Doreen Gray, has 65 stores: including 21 in Nova Scotia, 21 in New Brunswick, 15 in Newfoundland and Labrador, five in Prince Edward Island and three other provinces.

The company, which also has a lens processing facility, reported revenues of about $40 million in the 12 months to Aug. 31.

"We feel privileged welcoming the Vogue Optical team in our organization," New Look vice-chairman Antoine Amiel said in a statement announcing the deal Wednesday.

"Vogue Optical will operate as a stand-alone business based in Charlottetown," Amiel said, adding that both groups will continue to grow organically and by acquisition in their respective markets.

The combined entity will have revenues exceeding $128 million and a store network with more than 140 locations, making it the third largest Canadian integrated retail optical company and the eighth largest in North America.

In connection with this transaction, New Look has entered into various financing arrangements providing for a senior secured debt facility of up to $75 million with a syndicate of major Canadian banks.

The financing is comprised of an acquisition term facility of up to $65 million and a $10-million revolving facility, as well as a maximum of $25 million of equity financing.

New Look has also entered into an arrangement for a $15-million junior unsecured debt facility with a Quebec-based fund which may be used to finance a portion of the acquisition, thus reducing the draw on the acquisition term facility.

The deal is expected to close in early December.