STAFA, SWITZERLAND – Sonova Holding AG today announces the agreement to acquire the HYSOUND Group, one of the leading nationwide chains of audiological care clinics in China. The HYSOUND Group will significantly enlarge Sonova’s store footprint and direct consumer access in this fast-growing market, by adding around 200 clinics in over 20 provinces and more than 70 cities across China.
With the latest move, Sonova joins rival Demant in significantly expanding its retail presence in the country. In June, Demant announced the acquisition of ShangWeng, a leading retail chain in the country with approximately 500 clinics across China.
According to the company’s news release, key highlights include:
- The HYSOUND Group’s nationwide organization and successful retail business model provides a strong platform for Sonova’s further expansion in China.
- The HYSOUND Group’s strengths make a perfect strategic fit with Sonova’s industry-leading digital engagement capabilities in China, which include a range of strong partnerships and a large volume of online followers and interactions.
- With over 650 well experienced employees and a strong reputation in China’s high-end audiology services market, the HYSOUND Group generated net revenue of approximately RMB 230 million (around ~$33.4M USD) in calendar year 2021, representing a double-digit sales growth, which was achieved despite ongoing challenges related to the COVID pandemic.
- The transaction is expected to close in the second half of FY2022/23, subject to regulatory approval.
“This is another important move to increase our consumer access through our audiological care business, which is one of the key pillars of our strategy,” said Arnd Kaldowski, CEO of Sonova.
“China is by far the largest high-growth market globally, which is particularly attractive due to their aging population. We project that the rapid growth of their middle class will strongly increase today’s very low hearing instrument penetration in the next 5 to 10 years. This acquisition puts Sonova in an excellent position to achieve a large-scale consumer access in China. HYSOUND Group, with its rapidly growing traditional retail business, represents the perfect platform to further accelerate Sonova’s participation in the audiological care segment of China.”
–Arnd Kaldowski, Sonova CEO
“Sonova is an exceptionally strong player in the global audiological care retail market. The synergies between Sonova and HYSOUND Group will further strengthen our market leadership in China’s high-end audiology services market,” said William YingWei Wang, Founder & CEO of HYSOUND Group. “We will be able to leverage Sonova’s existing capabilities in omni-channel consumer engagement in China, where we were particularly attracted by its combination of digital engagement with brick-and-mortar clinics. We are delighted to have signed this agreement and look forward to working together with the Sonova team to continue providing superior high-tech products and professional services for Chinese customers.”
Goldman Sachs International acted as financial advisor to Sonova on this transaction.