IntriCon acquires PC Werth Ltd

IntriCon Corporation, a US designer, developer, manufacturer and distributor of miniature and micro-miniature body-worn devices, has announced that it has acquired assets of PC Werth Ltd, a leading supplier of hearing healthcare products and equipment to the United Kingdom’s National Health Service (NHS).
In December 2014, IntriCon entered into an exclusive agreement with PC Werth Ltd, to distribute its high-quality hearing aid products in the United Kingdom. By acquiring PC Werth, IntriCon gains direct access to the NHS and greater control over its efforts to accelerate new market penetration in the United Kingdom.
As previously noted, the NHS is the largest purchaser of hearing aids in the world, supplying an estimated 1.4 million hearing aids annually. Post integration, IntriCon expects the acquisition will generate $4.5 million to $5.5 million in revenue on an annualized basis, and be accretive to earnings per share.
The transaction will require various NHS contracts to be novated, which the company anticipates completing in 2015. Going forward, IntriCon will continue to use the PC Werth tradename and Kamplex brand. Key management of PC Werth will be retained as part of the transaction.
Said Mark Gorder, President and Chief Executive Officer of IntriCon: “Our acquisition of PC Werth provides IntriCon a solid foundation to expand our presence in the UK and establishes a direct link to the NHS. An immediate initiative will be to increase our sales and market efforts to drive NHS market share. The NHS is widely recognised as the most efficient hearing aid delivery system in the world, and we believe we are well-positioned to serve their needs.”