GN Store Nord Shares Leap 36% After Hearing Aid Unit Sold to Amplifon for 17 Billion Crowns

Shares of GN Store Nord (GN) took off with a 36% jump on Monday after the Danish audio specialist struck a deal to offload its hearing aid business to Italian retailer Amplifon (AMPF). The price tag? A hefty 17 billion Danish crowns.

The transaction includes 12.6 billion crowns in cash, while the balance will be paid via 56 million newly issued Amplifon shares. Post-deal, GN will own around 16% of Amplifon, although these shares will be under standard lock-up restrictions.

This hearing segment pulled in 7.21 billion crowns in revenue last year, with a pro-forma EBITDA of 1.19 billion crowns. It encompasses the ReSound and Beltone brands along with their related intellectual property, R&D efforts, manufacturing, and Beltone's partnership network. Notably, GN's stake in Nations Benefits LLC was left out.

Amplifon's CEO, Enrico Vita, described the acquisition as the most transformative in the company's 75-year history, highlighting that the merged entity will generate roughly €3.3 billion in revenues and span over 100 countries.

Amplifon shares reacted differently, sliding over 10% as investors mulled the acquisition's hefty price. The stock settled at €9.69, with volumes rising to 2.4 million shares, compared to 1.49 million traded in the previous session.

From GN's side, trading volume skyrocketed to 4.63 million shares, a stark contrast to around 700,000 the day before, pushing the price to 119.8 crowns.

The deal needs to clear merger control checks and hinges on a statutory demerger of the hearing division via the Danish Companies Act. The expected closing window is by end-2026.

Following the sale, GN plans to use the cash to reduce debt, reinvest in its remaining operations (Enterprise and Gaming), and return some capital to its shareholders. It also adjusted its 2026 revenue guidance to 2%-8% growth, focusing just on its non-hearing business segments, and put its longer-term targets on pause while it restructures.

Independent fairness opinions from J.P. Morgan Securities and Nordea Corporate Finance backed the transaction's financial soundness as of March 16.