Siemens is the HearUSA biggest supplier (HearUSA is one of the nation’s largest and oldest networks of audiology practices, when recently the West Palm Beach-based company’s voluntary filing under Chapter 11 of the US Bankruptcy Code) and has been a strong distributor for their Siemens Hearing Aids. It was enhanced last year with a deal with HearUSA with a marketing deal of $83.5 million. With this bidding win of HearUSA, Siemens or Siemens Hearing Instruments has well improved their footing in the hearing industry and they have very good hearing aid ratings for their products too.
Siemens Hearing Instrument has outbid and won this auction over the Denmark-based William Demant Holdings, parent company of Oticon (bidding of $70 million). This deal will be completed in about 30 days.
What will be the Siemens winning bid be in terms of the breakdown. Basically there are 4 parts. First of all, the Cash of $66.8 milion, a portion of $10 million to repay a loan from William Demant Holdings that was used previously to fuel the company during their bankruptcy. Secondly is the credit bid of $30.7 million secured claim against debtor. Third is an estimation of a cost of $11.7 million for court expenses and liabilities expenses. Last but not least, the waiving of the HaringUSA distributorship of stocks.
All the HearUSA employers and locations will be taken by Siemens. Feeling of this acquistions is that Siemens will not do much change to the company for now and will also have the employment for all the senior management and employees. There was no comment from Siemens spokeswoman when requested for comments.