UPDATE: Italy's Amplifon To Buy Australia's NHC For A$460 Million
September 28 2010 - 12:48PM
Dow Jones News
Hearing aid retailer Amplifon SA (AMP.MI) said Tuesday it signed
an agreement to buy Australia's NHC Group Pty Ltd for A$460 million
in cash from its private equity owner--a deal that will transform
the Italian company's business and reach.
The deal is transformative for Amplifon which has a market cap
of just EUR700 million despite being the world's largest hearing
aid retailer. NHC, which is owned by Crescent Capital and has 200
stores in Australia, New Zealand and India, will give Amplifon a
substantial foothold in a new market and will also help it move on
the fast growing markets in Asia.
"This acquisition represents a milestone in the history of our
Group," said Franco Moscetti, Amplifon's chief executive.
"We will enter new markets through the acquisition of a player
with a strong position, proven business model, experienced
management team and recognized brand. Amplifon will also benefit
from a solid platform to pursue a path of expansion in other Asian
markets, whose increasing role will allow us to further accelerate
growth and development of our business," Moscetti said.
It is a chunky deal for Amplifon and at more than 10 times NHC's
EBITDA of A$41 million higher than the eight or nine times EBITDA
historically paid for takeovers in Australasia's healthcare
services. Citi advised Amplifon on the deal.
Amplifon is financing the acquisition through a new bank
financing organized by Banca Imi S.p.A., BNP Paribas' (BNP.FR)
Italian Branch, Citigroup Global Markets Limited and UniCredit
Corporate Banking S.p.A.
JPMorgan Chase (JPM) advised NHC on the auction which attracted
trade and private equity buyers. Local reports linked rivals as
Swiss Sonova Holding AG (SOON.VX) and Denmark's William Demant
Holding A/S (WDH.KO). Buyout firms TA Associates and a consortium
of Ironbridge Capital and Archer Capital were also reported to have
been interested.
The transaction is expected to close in the fourth quarter of
2010 and is subject to the approval of the Foreign Investment
Review Board in Australia and the Overseas Investment Office in New
Zealand.
-By Giada Zampano and Marietta Cauchi, Dow Jones Newswires; +39
06 69766920; giada.zampano@dowjones.com
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