GN Store Nord A/S

08/20/2024 | Press release | Archived content

GN announces divestment of Danish hearing aid retailer

GN announces divestment of Danish hearing aid retailer

GN News

Aug 20, 2024

Continued execution of strategic business focus and capital plan

GN has 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.


Scott Davis, Hearing division President at GN, comments: "We are pleased to have found a new owner for DHC that can continue to take good care of DHC's customers. 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 September 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.

For further information, please contact:

Investor Relations
Rune Sandager +45 45 75 92 57

Media Relations
Steen Frentz Laursen +45 20 65 34 20

Forward-looking statements
The forward-looking statements in this report reflect the management's current expectations of certain future events and financial results. Statements regarding the future are, naturally, subject to risks and uncertainties, which may result in considerable deviations from the outlook set forth. Furthermore, some of these expectations are based on assumptions regarding future events, which may prove incorrect. Changes to such expectations and assumptions will not be disclosed on an ongoing basis, unless required pursuant to general disclosure obligations to which GN is subject.

Factors that may cause actual results to deviate materially from expectations include - but are not limited to - general economic developments and developments in the financial markets as well as foreign exchange rates, technological developments, changes and amendments to legislation and regulations governing GN's markets, changes in the demand for GN's products, competition, fluctuations in sub-contractor supplies, and developments in ongoing litigation (including but not limited to class action and patent infringement litigation in the United States).

For more information, please see the "Management's report" and "Risk management" sections in the Annual Report. This Report should not be considered an offer to sell securities in GN.

About GN
GN brings people closer through our leading intelligent hearing, audio, video, and gaming solutions. Inspired by people and driven by innovation, we deliver technologies that enhance the senses of hearing and sight. We help people with hearing loss overcome real-life challenges, improve communication and collaboration for businesses, and provide great experiences for audio and gaming enthusiasts. GN was founded more than 150 years ago with a vision to connect the world. Today, inspired by our strong heritage, GN touches more lives than ever with our unique expertise and the broadest portfolio of products and services in our history - bringing people closer to what is important to them.

We market our solutions with the brands Jabra, ReSound, SteelSeries, Beltone, Interton, BlueParrott, Danavox, and FalCom in 100 countries. Founded in 1869, GN Group employs more than 7,000 people and is listed on Nasdaq Copenhagen (GN.CO).

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