IntriCon Exercises Option to Acquire Remaining Stake in Hearing Help Express
January 19 2017 - 4:15PM
Business Wire
IntriCon Corporation (NASDAQ: IIN), a designer,
developer, manufacturer and distributor of miniature and
micro-miniature body-worn devices, today announced that it has
exercised its option to acquire the remaining 80-percent stake in
DeKalb, Ill.-based Hearing Help Express (HHE), a direct-to-consumer
mail order hearing aid provider. Terms of the transaction include
$650,000 in cash, guaranty of HHE’s $2 million note and an
earn-out. The deal is expected to close in the first half of 2017,
subject to customary closing conditions.
“Completing this acquisition will give IntriCon direct access to
consumers and the emerging value-based hearing healthcare market,”
said Mark Gorder, president and chief executive officer of
IntriCon. “HHE offers a lower-priced alternative for consumers to
purchase devices directly—circumventing layers of costs associated
with the conventional hearing aid channel. We look forward to
building on the HHE platform by leveraging our own technically
advanced devices and making targeted investments in management,
marketing and advertising—and ultimately incorporating an online
component.”
Since taking its initial 20-percent stake in October 2016,
IntriCon has made meaningful progress integrating and optimizing
HHE. To date IntriCon has:
- Streamlined management
positions—generating nearly $300,000 in net annual cost
savings;
- Started to map out the introduction of
IntriCon’s advanced digital hearing devices into HHE’s product
line;
- Transitioned all treasury controls to
IntriCon corporate headquarters; and
- Leased a new HHE facility which is
expected to drive operating efficiencies and better work
management.
“We’re excited about the opportunity to deliver superior
outcomes-based affordable hearing healthcare. And we look forward
to providing an update on HHE on our January 26 strategy update
conference call,” concluded Gorder.
About IntriCon CorporationHeadquartered in Arden Hills,
Minn., IntriCon Corporation designs, develops, manufactures and
distributes miniature and micro-miniature body-worn devices. These
advanced products help medical, healthcare and professional
communications companies meet the rising demand for smaller, more
intelligent and better connected devices. IntriCon has facilities
in the United States, Asia, the United Kingdom and Europe. The
company’s common stock trades under the symbol “IIN” on the NASDAQ
Global Market. For more information about IntriCon, visit
www.intricon.com.
Forward-Looking StatementsStatements made in this release
and in IntriCon’s other public filings and releases that are not
historical facts or that include forward-looking terminology are
“forward-looking statements” within the meaning of the Securities
Exchange Act of 1934, as amended. These forward-looking statements
may be affected by known and unknown risks, uncertainties and other
factors that are beyond IntriCon’s control, and may cause
IntriCon’s actual results, performance or achievements to differ
materially from the results, performance and achievements expressed
or implied in the forward-looking statements. These risks,
uncertainties and other factors are detailed from time to time in
the company’s filings with the Securities and Exchange Commission,
including the Annual Report on Form 10-K for the year ended
December 31, 2015. The company disclaims any intent or obligation
to publicly update or revise any forward-looking statements,
regardless of whether new information becomes available, future
developments occur or otherwise.
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version on businesswire.com: http://www.businesswire.com/news/home/20170119006200/en/
At IntriCon:Scott Longval, CFO,
651-604-9526slongval@intricon.comorAt PadillaCRT:Matt Sullivan,
612-455-1700matt.sullivan@padillacrt.com
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