GN Store Nord shares surge 36% on 17 bln crown hearing sale to Amplifon

Investing.com -- Shares in GN Store Nord jumped 36% on Monday after the Danish audio group agreed to sell its hearing aid division to Italian retailer Amplifon for DKK17 billion, while Amplifon stock fell over 8% as the market weighed a transaction that analysts at Jefferies said would fundamentally reshape the hearing care sector.

Amplifon will pay DKK12.6 billion in cash and issue 56 million shares as the remaining consideration. GN will hold approximately 16% of Amplifon’s outstanding share capital at closing, subject to lock-up restrictions.

The deal will push Amplifon’s leverage to approximately 3 times pro-forma and create a combined group with revenues of approximately €3.3 billion and pro-forma adjusted EBITDA of approximately €830 million, including net synergies of €60 million to €80 million expected by end-2029, Jefferies said. One-off integration costs are seen at approximately €80 million over two to three years post-closing.

Jefferies described the strategic rationale as "obvious," estimating that GN currently supplies approximately one-third of Amplifon’s hearing aid volumes. 

The brokerage said the transaction would transform Amplifon from a pure-play retailer into a vertically integrated player comparable to rivals Demant and Sonova, while allowing GN, which carried leverage of more than 4 times at end-2025, to reduce debt and refocus on audio and video peripherals.

The deal carries collateral risk for other hearing aid manufacturers. Jefferies estimated that WS Audiology supplies approximately one-third of Amplifon’s volumes, Sonova approximately 20% and Demant 10% to 15%, putting those companies at risk of losing a significant revenue stream, approximately 3% of revenues for Sonova and 2% to 3% for Demant.

The Hearing business generated revenue of DKK7.21 billion and pro-forma EBITDA of DKK1.19 billion in 2025. 

It comprises the ReSound and Beltone brands, all associated intellectual property, research and development, manufacturing and Beltone network partnerships.

Amplifon Chief Executive Enrico Vita called it "the most transformative acquisition in our 75-year-long history."

Closing is expected by end-2026, subject to merger control approvals and completion of a statutory demerger under Danish Companies Act.

GN revised its 2026 organic revenue growth guidance to 2% to 8%, covering only its Enterprise and Gaming divisions, and suspended its long-term financial targets. 

Jefferies maintained a “buy” rating on GN with a price target of DKK111 and a “buy” rating on Amplifon with a price target of €16.