Siemens, the world’s oldest hearing aid company, after decades of innovations, has sold its hearing aid division.
Siemens AG sold its Siemens Audiology Solutions unit to the Stockholm-based private-equity firm EQT Partners AB and Germany’s Strüngmann family of entrepreneurs as co-investors. The purchase price is €2.15 billion ($2.67 billion) and the sale passed regulatory approval on January 15.
Both EQT, with the Wallenberg family as primary investors, and the Struengmann family have extensive experience in the healthcare industry. EQT is a growth-oriented investment company managing around €22 billion ($27 billion) in assets and proven expertise in the healthcare and medical engineering sector. It is the owner of LBX, one of the largest pharmacy chains in China’s growth market. Germany’s Strüngmann family of entrepreneurs is also known for its focus on long-term growth. In 1986, the family founded Hexal, which has since become Germany’s leading provider of generic drugs.
The new division will operate under the corporate banner of Sivantos while, for the short term, continue to market their devices under the Siemens and Rexton names. This transaction comes as the latest product, BINAX, is launched. This new product is touted as providing better-than-normal hearing in noisy situations.
We will be watching to see the influence that the new owners will have on the company and remain optimistic with renewed focus.