Overview of the Sale#
Shares of GN Store Nord experienced a significant increase of 36% on Monday after the company announced it would sell its hearing aid division to Italian retailer Amplifon for 17 billion Danish crowns. This sale has sparked considerable market activity, with GN's shares rising to 119.8 crowns on a trading volume of 4.63 million shares, compared to just 700,350 shares traded the previous session.
Details of the Transaction#
Under the terms of the agreement, Amplifon will pay 12.6 billion crowns in cash and will also issue 56 million shares of Amplifon stock as part of the deal. Following the sale's completion, GN Store Nord will own approximately 16% of Amplifon’s shares, subject to standard lock-up restrictions. The hearing aid business, which includes the ReSound and Beltone brands, generated revenue of 7.21 billion crowns and had a pro-forma EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) of 1.19 billion crowns in 2025. The division employs around 5,500 people and also encompasses associated intellectual property and manufacturing.
Market Reactions#
While GN Store Nord's stock rose sharply, Amplifon's shares fell over 10%, dropping to €9.69 as investors considered the financial implications of the acquisition. Amplifon’s CEO, Enrico Vita, described the deal as "the most transformative acquisition in our 75-year-long history," projecting that the combined company would have revenues of approximately €3.3 billion and operate in over 100 countries.
Future Plans and Financial Guidance#
The completion of this transaction is contingent on regulatory approvals and a statutory demerger of the hearing business under Danish law, with an expected closing date by the end of 2026. GN Store Nord plans to use the proceeds from this sale to reduce its debt, reinvest in its operations, and return capital to shareholders. The company has also adjusted its 2026 organic revenue growth forecast to between 2% and 8%, focusing solely on its Enterprise and Gaming divisions, and has suspended its long-term financial targets until a new operating structure is established. J.P. Morgan Securities and Nordea Corporate Finance provided fairness opinions to the GN board, affirming the deal's financial fairness.