Summary: GN announced the divestment of Dansk HøreCenter (DHC) to Demant, aligning with its strategy to focus on partnerships with independent hearing aid dispensers and divest from retail operations.
Key Takeaways:
- Strategic Focus: GN’s divestment of DHC is part of its broader strategy to exit retail operations and concentrate on being a key partner to independent hearing aid dispensers.
- Financial Impact: The divestment will not affect GN’s financial guidance but support the company’s long-term growth and margin targets.
- Successful Transition: The transaction, expected to close on Sept. 2, 2024, reflects GN’s commitment to ensuring continuity in customer care while focusing on its core strengths.
GN entered into an agreement to divest Dansk HøreCenter (DHC) to Demant. DHC was acquired by GN’s Hearing division in 2013 in connection with a generational transition and is a well-reputed hearing aid retail chain operating 36 stores across Denmark.
In 2023, DHC’s retail revenue accounted for approximately 1% of the Hearing division’s revenue, while the wholesale value for GN was insignificant. As a consequence of the transaction, GN’s supply of products to DHC will gradually be phased out.
The transaction demonstrates GN’s commitment to its successful strategy of not owning retail and focus on being a key partner to strong independent hearing aid dispensers. In line with this, GN has over the past couple of years divested the vast majority of its retail stores to focus its investments on synergetic assets that are accretive to growth and margins. This is in line with the strategy communicated at the Capital Market Day in May.
“We are pleased to have found a new owner for DHC that can continue to take good care of DHC’s customers,” says Scott Davis, Hearing division president at GN. “I would also like to thank DHC’s employees for their dedication to hearing care over the years in the GN family. For us at GN, this is an important divestment allowing us to fully focus on what we do best.”
The transaction is expected to close on Sept. 2, 2024, subject to customary closing conditions.
The divestment of DHC will not impact the financial guidance of GN but will further support the long-term target aspirations of the group.
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