Abano Healthcare Group has today confirmed its entry into the multi-million
dollar Asian audiology market with the planned acquisition of audiology
businesses in Singapore and Hong Kong.
Through subsidiaries of Bay Audiology, Abano intends to acquire three clinics
in Singapore from Siemens as part of its partnership agreement with the
multi-national audiology manufacturer, Siemens Audiology Solutions.
Separately, the Bay subsidiaries will also acquire a further audiology clinic
in Singapore and two clinics in Hong Kong.
These businesses, which will be acquired by Abano for approximately NZ$3
million, are expected to provide over NZ$3 million in annualised revenues and
be earnings accretive from the date of acquisition, planned for December
2008.
Managing director of Abano, Mr Alan Clarke, commented: "Hong Kong and
Singapore are markets that are growing at over twice the rate of New Zealand,
with a higher GDP per capita. Household discretionary incomes are
increasing rapidly in these countries and consumers are both sophisticated
and brand conscious.
"Most countries have a one in nine proportion of people with hearing
difficulties. However, whereas in New Zealand and Australia, approximately
20 to 30 percent of these people are being treated for hearing loss, in Asia,
this treatment rate is well below five percent. This provides a significant
opportunity for the professional delivery of audiology services, with strong
growth potential, and we believe the already proven Bay Audiology business
model and brand can fill this gap.
"With limited existing providers, growing economies and large prosperous
populations, all major hearing aid companies have established manufacturing
plants and growing marketing and distribution networks in these countries.
"Like our well researched entry into the Australian market, this has been a
carefully considered move, supported through our new partnership with the
Siemens Group. The Siemens'' strategy is to focus on research and
development and manufacturing. Their distribution strategy is to partner
with experienced retail and services providers and Bay Audiology was selected
as their preferred partner for these countries.
"Our Asian audiology development strategy is similar to our Australian
entry. We will develop and grow each market through the acquisition of
carefully selected local businesses, followed by the opening of new sites in
specifically targeted areas in line with our philosophy to improve access and
reduce barriers for hearing aid customers."
As previously announced, a new Asia regional manager, Robert Gilligan, has
been appointed to oversee the expansion into the Asian market and currently
he is based in Singapore. Robert is a clinically trained audiologist with
significant management and retail experience including a previous role with
manufacturer and retailer GN Resound as Country Manager for Brazil.
End CA:00173319 For:ABA Type:GENERAL Time:2008-11-25:11:00:31