IntriCon Acquires Stake In Hearing Help Express

IntriCon Corporation (NASDAQ: IIN), a designer, developer, manufacturer and distributor of miniature and micro-miniature body-worn devices, today announced that it has acquired a 20-percent stake in DeKalb, Illinois-based Hearing Help Express, a direct-to-consumer mail order hearing aid provider. IntriCon expects to exercise its option to acquire the remaining 80 percent of Hearing Help Express before the end of the year. Terms of the transaction, assuming exercise of the option, include approximately $1.3 million in cash, guaranty of a $2 million note and an earn-out.

"Untreated hearing loss in the United States is a substantial problem, and high device costs have created significant barriers to access for most Americans," said Mark Gorder, president and chief executive officer of IntriCon. "Hearing Help Express offers a lower-priced alternative for consumers to purchase devices directly—circumventing layers of costs associated with the conventional hearing aid channel.

"Additionally, Hearing Help Express has two decades of experience and a proven track record of excellent customer care. This acquisition gives IntriCon direct access to the emerging value-based hearing healthcare market. It's a platform we can build on by leveraging our own technically advanced devices and making targeted investments in management, marketing and advertising—and ultimately incorporating an online component."

Purchasing Hearing Help Express is a key evolution in IntriCon's value-based hearing healthcare (VBHH) strategy. Over the last decade, the company has invested in the technical and low-cost manufacturing (establishing facilities in Singapore and Indonesia) to design and build superior devices and fitting solutions to address the estimated $1 billion annual value hearing health market. With the addition of Hearing Help Express, IntriCon now has the channel infrastructure to directly reach the consumer and—importantly for millions of consumers—the ability to offer high-quality hearing healthcare at a fraction of the cost.

Said Gorder, "Through our VBHH initiatives and tests, we have formed alliances with other key partners, which have given us experience and key learnings as we move aggressively into a more consumer-facing role. Our Hearing Help Express purchase provides an efficient, established direct-to-consumer channel that we can build on and expand via technology—and one that's complementary with many of our existing relationships."

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