GN Store Nord Stock Surges 36% on Sale of Hearing Business to Amplifon SpA for 17 Billion Danish Kroner

Investing.com - Danish audio group GN Store Nord’s stock surged 36% on Monday after the company agreed to sell its hearing aid business to Italian retailer Amplifon SpA for 17 billion Danish kroner, while Amplifon’s stock fell more than 10%, as the market weighs the costs of the acquisition.

GN’s stock rose to 119.8 kroner with a volume of 4.63 million shares, compared to 700,350 shares in the previous trading day. Amplifon dropped to €9.69 with a volume of 2.4 million shares, compared to 1.49 million in the previous day.

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According to Monday’s announced terms, Amplifon will pay 12.6 billion kroner in cash and issue 56 million Amplifon shares as remaining consideration.

After the deal closes, GN will hold approximately 16% of Amplifon’s issued share capital but will be subject to customary lock-up restrictions.

The hearing aid business generated 7.21 billion kroner in revenue and 1.19 billion kroner in projected EBITDA in 2025. The division employs about 5,500 staff, including brands ReSound and Beltone, all related intellectual property, R&D, manufacturing, and Beltone network partnerships. The transaction does not include GN’s investment in Nations Benefits LLC.

Amplifon CEO Enrico Vita called it “the most transformative acquisition in our 75-year history,” stating that the combined group’s revenue will reach approximately €3.3 billion, with operations in over 100 countries.

The deal requires approval for merger control and statutory separation of the hearing aid business under Danish company law, and is structured as a taxable transaction. Completion is expected by the end of 2026.

GN said it will use the cash proceeds to reduce debt, reinvest in operations, and return capital to shareholders.

The company revised its 2026 organic revenue growth guidance to 2% to 8%, covering only its corporate and gaming divisions, and paused its long-term financial targets while establishing an independent operating structure.

JPMorgan Securities and Nordea Corporate Finance each provided the GN board with fairness opinions dated March 16, confirming that the transaction terms are fair from a financial perspective.

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