Shares of GN Store Nord surged on Monday after the Danish audio and hearing group reached an agreement to sell its Hearing division to Amplifon for a headline price of 17 billion Danish crowns. The market reaction was dramatic: GN shares climbed 36% to 119.8 crowns on a trading volume of 4.63 million shares, compared with 700,350 shares traded in the session before. By contrast, Amplifon stock fell more than 10% to 9.69 on volume of 2.40 million shares, versus 1.49 million shares a session earlier.
Under the terms disclosed, Amplifon will fund the transaction with 12.6 billion crowns in cash and by issuing 56 million of its own shares for the remaining consideration. Following completion, GN is expected to hold approximately 16% of Amplifons outstanding share capital, subject to customary lock-up restrictions attached to the share consideration.
The business being sold reported revenue of 7.21 billion crowns and pro-forma EBITDA of 1.19 billion crowns for 2025. The unit comprises the ReSound and Beltone brands, associated intellectual property, research and development, manufacturing operations and the Beltone network partnerships. It employs approximately 5,500 people. The scope of the transaction excludes GNs investment in Nations Benefits LLC.
Amplifon Chief Executive Enrico Vita described the acquisition as "the most transformative acquisition in our 75-year-long history," and stated that the combined organization would generate roughly 3.3 billion in revenues and operate in more than 100 countries.
The deal remains subject to merger control approvals and also requires GN to complete a statutory demerger of the Hearing business in accordance with the Danish Companies Act. The transaction is structured as a taxable demerger. Both parties anticipate closing by the end of 2026, dependent on regulatory clearance and completion of the demerger process.
GN said it intends to deploy the cash proceeds to lower indebtedness, reinvest in operational activities and return capital to shareholders. In connection with the sale, the company narrowed its 2026 organic revenue growth guidance to a range of 2% to 8%, explicitly covering only its Enterprise and Gaming divisions. GN also suspended its longer-term financial targets while it establishes a standalone operating structure for its remaining businesses.
J.P. Morgan Securities and Nordea Corporate Finance provided the GN board with fairness opinions dated March 16, each concluding that the terms of the proposed transaction are fair from a financial perspective.
Market context and implications
- Equity markets reacted swiftly, rewarding GNs balance-sheet simplification with a sharp share-price rise and marking Amplifon down as investors digest the dilution and cash outlay.
- The sale materially reshapes GNs business mix by removing the Hearing unit from its operational footprint while preserving an equity position in the combined Amplifon group.
- For Amplifon, the acquisition expands revenue scale and global reach, as reflected in the combined revenue projection of approximately 3.3 billion.