Germany-based audio products maker Sennheiser has announced it is selling its headphones division to hearing aid maker Sonova of Sweden. The sale costs 200m euros.
The Swiss company Sonova, known for the design and manufacture of hearing aids and prostheses, acquired Sennheiser’s consumer electronics division. This means that Sonova has entered the audio market and the German brand has taken over the headphone consumer portfolio.
Sennheiser announced in mid-February of this year that it was looking for a buyer for its consumer business. The reason for this decision is the strong competitive pressure that the company cannot cope with. Although Sennheiser’s consumer product sales reached record levels in 2019, the company was losing money on profit margins against the competition. Attempts to help partition in every possible way failed, the company laid off 650 people and announced the search for a buyer.
Sennheiser management said in a statement that they could not have imagined a better partner because Sonova shared “not only a passion for sound and superior product quality but also very similar corporate values.”
The deal is worth 200m euros, still requires regulatory approval, and will be completed in the second half of this year. Later, Sonova will start selling products under the Sennheiser brand.