- Published on 15 September 2014
The German industrial group Siemens is renewing efforts to divest its hearing aids business and could earn up to 2 billion Euros (USD 2.7 billion) from the deal.
In the past, Siemens has tried to divest this business that has 700 million Euros in annual sales. Corresponding earnings amount to 160 to 170 million Euros. The company’s objective, under the leadership of Chief Executive Joe Kaeser, is to focus on its highest earning businesses to increase profitability. It is involved in a wide range of industrial sectors, from energy to transport and healthcare.
It is not yet clear what form the divestment might take. Siemens Audiology Solutions could be floated if there is enough investor interest. In another scenario, Siemens may decide to spin off the business. Selling the hearing aids business to private equity investors or to another company remains an option.
Earlier this year, Siemens discussed a tie-up between their hearing aids business and Danish company GN Resound, but according to sources, the two groups could not agree on terms. “Of course we have discussed internally if a deal with Siemens would be possible, otherwise we would not have done our job as a professional company, but I can’t comment further on this,” said Anders Boyer, Finance Officer at the Danish business’s parent company GN Store Nord.
According to research and brokerage firm Bernstein Research, New York City, “Another possibility could be a buyout by a company like Samsung, which could be particularly appealing since Siemens has really oriented its business towards Asia in the past five-plus years”.Source: Reuters