Demant announced that it has completed the acquisition of 20% of the shares of ShengWang, a network of hearing aid clinics in China with approximately 500 stores across the country. The investment allows Demant to “further strengthen its position in the vast and rapidly growing Chinese hearing aid market, where ShengWang has high ambitions for continued expansion.” With a strong management team, a proven organization and scalable processes, ShengWang offers an excellent platform for growth for the next few years, according to Demant’s announcement.
Demant and ShengWang are working closely to complete a transaction to acquire the remaining 80% of ShengWang before the end of the first half of 2022, at which time details of the financial impact of the transaction will be disclosed.
ShengWang was founded in 1998 and has for several years – and especially after the introduction of Philips Hearing Solutions – been a valued partner of the Demant Group thanks to a strong relationship with its Hearing Aids business. Today, ShengWang has more than 1,300 employees serving the growing Chinese hearing care market, which is expected to experience double-digit annual growth rates over the next few years due to changing demographics and a gradually increasing penetration rate, according to Demant’s announcement. .
As part of the investment in ShengWang, Niels Wagner, president of Demant’s Hearing Care business, has joined the company’s board of directors.
In itself, the completion of the acquisition of 20% of ShengWang shares will have “only a very limited financial impact on the Group, and the Group’s outlook for 2022 therefore remains unchanged”. Completion of the planned full acquisition of ShengWang will result in full financial consolidation and, as noted above, the financial impact of any such consolidation will be disclosed upon closing of the transaction.
About Demant A/S
Demant is a hearing care group that provides solutions and services to help people with hearing loss connect with the world around them. In all aspects, from hearing aids and hearing implants, to diagnostics, audio and video solutions and worldwide hearing care, Demant is “active and committed”.
Picture: Photo 163682454 © Polly In | Dreamstime.com