Hearing aid group William Demant looks for more retail deals

(Reuters) – Hearing aid maker William Demant is looking for more retail acquisitions to increase control over the sale of its products and fight competition from discount chains such as Costco. The group will not hesitate to buy retail chains if necessary to protect the sale of own-brand hearing aids, Chief Executive Niels Jacobsen told Reuters on the sidelines of the company’s investor meeting in Copenhagen on Tuesday. “We are looking at what is coming up for sale and if it fits in our strategy then we are ready to buy,” Jacobsen said. He declined to specify how much money the company had to spend, but said it had strong cash flow. William Demant’s focus on retail follows Costco Wholesale’s move to become a major player in the retail market for hearing aids in the United States, where about 40% of all hearing aids are sold. Costco now accounts for around 10% of hearing aid sales in that market. Last month, Swiss market leader Sonova said it missed full-year sales and profit targets, partly because the Swiss hearing aid maker struggled to compete with Costco after the U.S. retail group cut prices on Sonova’s own brand products. More than 90% of the $6 billion hearing aid wholesale market is controlled by six companies and no new players of significance have come on the scene for the past three decades. Sonova and William Demant are estimated to control more than 40% of global market. Other hearing aid makers include Denmark’s GN Sto...
Source: Mass Device - Category: Medical Equipment Authors: Tags: Business/Financial News Otolaryngology Ear, Nose & Throat William Demant Holding Source Type: news