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Amplifon M&A Activity 2021
4030_tar_2021-07-12_330f32de-0af7-45ad-a1aa-32c36c0ab4ed.pdf
M&A Activity
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Bay Audio - A strategic acquisition to build another Company stronghold July 12th, 2021
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Statement
In compliance with Article 154 bis of the "University" (Legistative Decree 58/1998), the Financial Reporting Officer, Gabriele Galli, decares that the accounting information reported in this presponds to the underlying documentary reports, books of account and accounting entries.
Note: all financial data in AUD is translated to EUR at EUR/AUD FX of 1.60
Transaction highlights
| Deal structure & consideration |
■ Amplifon signed a definitive agreement for the acquisition of Bay Audio Pty Limited ("Bay Audio") from Peter & Anya Hutson, former founders of Bay Audiology in New Zealand and from other minority shareholders ▪ The purchase price on a cash and debt-free basis amounts to AUD 550 million (Euro 340 million) ▪ The acquisition will be fully financed by available cash |
|---|---|
| Strategic rationale & value creation |
■ Perfect fit with Amplifon's growth model and M&A strategy, enabling Amplifon to build another Company stronghold ▪ level by 2023 ■ Significant value creation and synerqy potential |
| Timing | ■ Closing expected by the end of 2021, after receipt of required antitrust clearance and Australian foreign investment approval |
A perfect fit to build another Company stronghold
Further strengthens Amplifon's position in the core Australian market, building another Company stronghold
Perfectly complements Amplifon's current presence in the country, creating an ideal platform, together with Amplifon and Attune, to offer the highest quality of hearing care in the country
ldeal combination thanks to Bay Audio's innovative retail model, strong brand, recognized premium positioning and high-growth and profitable business profile
~AUD 8 million (~Euro 5 million) of annual synergies at EBITDA level - leveraging greater scale and best practices sharing - are expected to be delivered by 2023
Acquisition to drive significant value creation for all stakeholders
A leading private independent hearing care retailer with a distinctive and highly complementary retail model
Key highlights
- Founded in Australia in 2007 by Peter and Anya Hutson, former founders of Bay Audiology in New Zealand
- Leading private independent hearing care retailer in the core Australian retail market
- 10th market worldwide
- · Customer-centric strategy focused in delivering the highest quality service to its customers
- Network of >IOO points of sale across the East Coast
- · Stores located in high traffic premiere & urban shopping malls
- Recognized premium positioning
- Wide customer base, including younger customers vs industry average
- Workforce of ~500 people, of which ~85% are field force
Distribution network
Unique asset with high-growth and profitable business profile
Strong financial profile to be further fostered by expected ~AUD 8 million run-rate synergies at EBITDA level by 2023, leveraging scale & best-practices sharing
Investor Relations and Sustainability Contacts
FRANCESCA RAMBAUDI Investor Relations Director
Tel: +39 02 5747 2261 [email protected]
amplifon
AMANDA HART GIRALDI Investor Relations Manager Tel: +39 02 5747 2317 [email protected] FRANCESCO ROMEO Sustainability Manager Tel: +39 344 2723 416 [email protected] OLGA LEPECHKINA Assistant Tel: +39 02 5747 2542