Sonova buys AudioNova in $953m deal

(Reuters) — Swiss hearing aid maker Sonova Holding AG (SIX:SOON) is buying Dutch-based AudioNova for €830 million ($953 million), its largest acquisition, to expand a network of European stores where it will jettison rivals’ products in favor of its own. The cash deal to buy AudioNova from Curacao-based investment company HAL Holding N.V. will add 1,300 stores in 8 European countries. That more than doubles Sonova’s presence in Europe and boosts its worldwide store total to more than 3,300. AudioNova now sells more than 300,000 hearing aids a year from different providers. Sonova products – its brands include Unitron and Phonak – account for about 25% of that figure. Over the next 2 years, however, CEO Lukas Braunschweiler said he plans to boost Sonova’s share of AudioNova’s sales to about 95%. It’s not uncommon for hearing aid retailers to switch brands, Braunschweiler said, so he did not fear a customer backlash by swapping out rival products. “Usually we bring share-of-wallet in our own retail chains up to about 95% of our own products, that’s the rule after 2 years, and we have about 5% other products left,” he explained. AudioNova is expected to generate 2016 sales of approximately €360 million and an EBITDA margin of around 16%, Sonova said, adding the acquisition will lift earnings per share starting in the financial year 2017/2018. Sonova shares rose more than 3% in early business, boosting their rise to...
Source: Mass Device - Category: Medical Equipment Authors: Tags: Mergers & Acquisitions Wall Street Beat Hearing Sonova Holding AG William Demant Holding Source Type: news