Hearing care retailer Amplifon S.p.A. has announced that it has signed a definitive agreement for the acquisition of Bay Audio Pty Limited from Peter and Anya Hutson, former founders of Bay Audiology in New Zealand, and from other minority shareholders.
The cash-out amounts to AUD 550 million (~$413M USD), on a cash and debt free basis.
Bay Audio, a leading private independent Australian hearing care retailer, operates a network of over 100 clinics in Australia located in high-traffic premiere shopping malls across the East Coast.
The Bay Audio acquisition represents a unique strategic opportunity for Amplifon as it:
- Further strengthens Amplifon’s position in the core Australian market, building another company stronghold;
- It perfectly complements Amplifon’s current presence in the country, creating an ideal platform, together with Amplifon and Attune, to offer the highest quality of hearing care in Australia;
- Represents the ideal combination thanks to Bay Audio’s innovative retail model, strong brand, recognized premium positioning and high-growth and profitable business profile;
- Around AUD 8 million (~6M USD) of annual synergies at EBITDA level – leveraging greater scale and best practices sharing – are expected to be delivered by 2023.
“This major acquisition represents another key milestone in the history of our Company and perfectly fits our growth model and M&A strategy. Moreover, this deal will enable us to build another Company stronghold, further strengthening our position in the Australian retail market, the tenth largest in the world. The combination with Bay Audio’s complementary and innovative business model, its premium positioning as well as its high-growth and profitable financial profile will allow us to create tremendous new opportunities to drive growth and deliver significant value to all stakeholders. Finally, we look forward to welcoming the management team and all the people of Bay Audio to our organization which, together with our people of Amplifon and Attune, will create a unique platform to offer the highest quality hearing care in Australia”.
–Enrico Vita, Amplifon CEO
Bay Audio Business
Bay Audio, founded in 2007, is controlled by major shareholders Peter and Anya Hutson, former founders of Bay Audiology in New Zealand (part of the Amplifon Group since 2010) and by interests associated with James Reeves, an experienced investor based in New Zealand.
In the financial year closed on May 31st 2021, despite the impact of the Covid-19 pandemic, Bay Audio posted revenues of around AUD 100 million (~$75M USD) and a Recurring EBITDA of over AUD 30 million (~$22.5M USD)1. For the year ending on May 31st, 2022 revenues, also in light of Covid-19 pandemic impact in the previous year, are expected to grow in the region of 30% together with a slight profitability improvement.
Bay Audio’s workforce comprises around 500 people, of which around 85% are related to the field force.
“I am delighted that Bay Audio finds a new home in the Amplifon Group and is reunited with the Bay Audiology business in New Zealand. Both Bay Audio and Amplifon are best-in-class retailers with an extraordinary focus on customer experience and people development. I am confident that, inside Amplifon, Bay Audio will expand the legacy we have built and continue to accelerate its growth trajectory.”
–Peter Hutson, Founder of Bay Audio
The acquisition will be fully financed by available cash.
The transaction is currently expected to be completed by the end of 2021 and is subject to the receipt of required antitrust clearance and Australian foreign investment approval.