Amplifon S.p.A. (“Amplifon” or the “Company”; MTA; Bloomberg ticker: AMP:IM), global leader in hearing solutions and services, announces today a joint venture with a local partner to enter the attractive and fast-growing Chinese hearing care retail market.
Amplifon holds 51 percent stake in the joint venture entity, while the local partner, a leading specialty retailer in the Beijing area, holds the remaining 49 percent interest. The transaction received all necessary regulatory clearances from local authorities.
The Chinese hearing care retail market represents a sizeable opportunity for Amplifon in the medium-long term given the estimated size of the market and expected growth, the current low penetration, the highly fragmented market structure and, moreover, the presence of a large consumer segment driven by quality of service, which represents the addressable market for Amplifon.
The joint venture entity, named Beijing Cohesion Hearing Science & Technology Co. Ltd., is located in Beijing and operates 30 shops, mainly located in the Beijing area. Beijing Cohesion Hearing Science & Technology Co. Ltd. expects sales of around RMB45 million (approximately €6 million) in 2019.
the CEO's comment
“This transaction is an important first step to build a local presence in China, a market which represents a sizeable opportunity for us, given the estimated market size and moreover its growth potential in the foreseeable future,” said Enrico Vita, Chief Executive Officer of Amplifon. “Expanding our footprint in China is definitely key to our medium-long term sustainable growth strategy.”