German audio specialist and well-known headphone maker Sennheiser will soon hand over its consumer business and brand name to a Swiss company specializing in hearing aids.
In a surprise move, hearing care company Sonova has announced its intention to acquire the Sennheiser Consumer Division, which covers all of the company’s consumer products including headphones, earbuds, and soundbars. Sonova will pay $240 million in cash for the company, with the deal including the use of the Sennheiser brand in perpetuity through a licensing agreement.
Sonova is by far the bigger of the two companies, having over 14,000 employees spread across 100 countries and generating over $3.2 billion in sales revenue last year. Sennheiser’s Consumer Division on the other hand consists of around 600 employees and generates roughly $300 million in sales annually. The two companies were founded within a couple of years of each other, with Sennheiser appearing just a few weeks after the end of World War II in 1945, and Sonova in 1947.
Arnd Kaldowski, CEO of Sonova, says: “I am very pleased that Sennheiser has chosen Sonova to further develop the well-renowned Consumer Division. We look forward to welcoming our new colleagues and to building on the combined strengths of both organizations to successfully shape our joint future. The fast-growing market for personal audio devices is rapidly evolving. Combining our audiological expertise with Sennheiser’s know-how in sound delivery, their great reputation as well as their high-quality products will allow us to expand our offering and to create important touchpoints with consumers earlier in their hearing journey. Combining our market-leading technology with the strong brand and well-established distribution network of Sennheiser creates a strong foundation for future growth.”
Sonova makes it clear that the company intends to use the Sennheiser brand to reach more consumers, but also points to non-medical solutions as a “first remedial step” when hearing loss begins. Clearly Sennheiser products already fill that need, and Sonova sees it as a complimentary solution to its extensive range of medical devices around the world.
“We couldn’t have asked for a better partner than Sonova for our Consumer Division,” says Daniel Sennheiser, co-CEO at Sennheiser. “Sonova is a strong, well-positioned company. Not only do we share a passion for unique audio experiences, we also share very similar corporate values. This gives us an excellent foundation for a successful future together.” Co-CEO Dr. Andreas Sennheiser adds: “The combination of our strengths provides a very good starting point for future growth. We are convinced that Sonova will strengthen the Sennheiser Consumer Division in the long term and capture the major growth opportunities.”
Sonova expects the acquisition to be completed in the second half of 2021 once relevant regulatory approval has been gained. Going forward, what remains of Sennheiser intends to focus on the professional market and to find a partner for any new consumer products it produces.
