Miracle-Ear
Encyclopedia
Miracle-Ear, Inc. is a network of retail outlets that distribute hearing aids manufactured by M-E Manufacturing and Services Inc. ("MEMSI"), a subsidiary
of Siemens Medical Solutions
. Miracle-Ear is a subsidiary of Amplifon S.p. A, a worldwide distributor of hearing aids based in Italy.
Miracle-Ear offers free audiometric
hearing tests and consultations at their retail outlets, but explicitly states on its website that these tests are "not a medical exam," and that the purpose of the exam is to determine the best hearing aid amplification settings. Miracle-Ear tests and hearing aid fittings are generally performed by a "hearing instrument specialist," not an audiologist. The Food and Drug Administration
(FDA) does, however, regulate hearing aids in the United States.
The "Miracle-Ear" began as a hearing aid manufactured by Dahlberg, Inc., an electronics company founded in 1948 by Kenneth Dahlberg
after he left a position as assistant to the president of Telex, another manufacturer of hearing aids. By 1959, Miracle-Ear had evolved into a subsidiary of Dahlberg, Inc. with USD 100 million in annual revenues. Dahlberg sold Miracle-Ear to Motorola, Inc. in 1959, and subsequently reacquired it in 1964.
In 1994 Dahlberg once again sold Miracle Ear to Bausch & Lomb for USD 139 million. The sale took place after Dahlberg, Inc. paid a USD 2.75 million civil penalty to settle Federal Trade Commission
(FTC) charges that the company made numerous false and unsubstantiated claims for its Miracle-Ear "Clarifier," a "noise-suppression" hearing aid, in violation of a 1976 FTC order. The national advertising campaign challenged by the FTC ran from 1988 until mid-1993.
Amplifon S.p.A. acquired Dahlberg, Inc. from Bausch & Lomb in August 1999 for USD 22 million. In December 1999 Dahlberg, Inc. and its subsidiary Miracle-Ear, Inc. merged into Miracle-Ear, Inc. At the time of the acquisition Miracle-Ear manufactured, distributed, and fitted hearing aids at 1,000 retail locations, 149 of which were operated directly by the company, and 851 of which were run by franchisees
. As of March 2011, Miracle-Ear had more than 1,200 locations in the United States.
In 2000 Amplifon sold the manufacturing business of Miracle-Ear, Inc. to MEMSI, a Siemens company, for approximately USD 3.9 million. Upon disposing of its manufacturing business, Miracle-Ear entered into an exclusive ten-year agreement with MEMSI for the supply of hearing aids.
As a result of the agreement with MEMSI Miracle-Ear began selling rebranded Siemens hearing aids and hearing aid accessories. For example, the Miracle-Ear "ME 1000" is available from Siemens as the "Pure 700," and the Miracle-Ear "MEBluConnect" is available from Siemens as the "Tek Bluetooth Wireless Hearing Aid Remote Control System." Similarly, Beltone Hearing Aids is a division of and sells hearings manufactured by Denmark-based GN Resound A/S, which also owns the Resound, Interton, and Otometrics brands.
Subsidiary
A subsidiary company, subsidiary, or daughter company is a company that is completely or partly owned and wholly controlled by another company that owns more than half of the subsidiary's stock. The subsidiary can be a company, corporation, or limited liability company. In some cases it is a...
of Siemens Medical Solutions
Siemens Medical Solutions
Siemens Healthcare is a supplier to the healthcare industry, and is headquartered in Erlangen, Germany. Prior to being acquired by Siemens in 2000, the company was known as Shared Medical Systems Corporation and traded on the New York Stock Exhange as "SMS"...
. Miracle-Ear is a subsidiary of Amplifon S.p. A, a worldwide distributor of hearing aids based in Italy.
Miracle-Ear offers free audiometric
Audiometry
Audiometry is the testing of hearing ability, involving thresholds and differing frequencies. Typically, audiometric tests determine a subject's hearing levels with the help of an audiometer, but may also measure ability to discriminate between different sound intensities, recognize pitch, or...
hearing tests and consultations at their retail outlets, but explicitly states on its website that these tests are "not a medical exam," and that the purpose of the exam is to determine the best hearing aid amplification settings. Miracle-Ear tests and hearing aid fittings are generally performed by a "hearing instrument specialist," not an audiologist. The Food and Drug Administration
Food and Drug Administration
The Food and Drug Administration is an agency of the United States Department of Health and Human Services, one of the United States federal executive departments...
(FDA) does, however, regulate hearing aids in the United States.
The "Miracle-Ear" began as a hearing aid manufactured by Dahlberg, Inc., an electronics company founded in 1948 by Kenneth Dahlberg
Kenneth H. Dahlberg
Kenneth Harry Dahlberg was an American businessman and highly decorated World War II fighter ace.-Early life:...
after he left a position as assistant to the president of Telex, another manufacturer of hearing aids. By 1959, Miracle-Ear had evolved into a subsidiary of Dahlberg, Inc. with USD 100 million in annual revenues. Dahlberg sold Miracle-Ear to Motorola, Inc. in 1959, and subsequently reacquired it in 1964.
In 1994 Dahlberg once again sold Miracle Ear to Bausch & Lomb for USD 139 million. The sale took place after Dahlberg, Inc. paid a USD 2.75 million civil penalty to settle Federal Trade Commission
Federal Trade Commission
The Federal Trade Commission is an independent agency of the United States government, established in 1914 by the Federal Trade Commission Act...
(FTC) charges that the company made numerous false and unsubstantiated claims for its Miracle-Ear "Clarifier," a "noise-suppression" hearing aid, in violation of a 1976 FTC order. The national advertising campaign challenged by the FTC ran from 1988 until mid-1993.
Amplifon S.p.A. acquired Dahlberg, Inc. from Bausch & Lomb in August 1999 for USD 22 million. In December 1999 Dahlberg, Inc. and its subsidiary Miracle-Ear, Inc. merged into Miracle-Ear, Inc. At the time of the acquisition Miracle-Ear manufactured, distributed, and fitted hearing aids at 1,000 retail locations, 149 of which were operated directly by the company, and 851 of which were run by franchisees
Franchising
Franchising is the practice of using another firm's successful business model. The word 'franchise' is of anglo-French derivation - from franc- meaning free, and is used both as a noun and as a verb....
. As of March 2011, Miracle-Ear had more than 1,200 locations in the United States.
In 2000 Amplifon sold the manufacturing business of Miracle-Ear, Inc. to MEMSI, a Siemens company, for approximately USD 3.9 million. Upon disposing of its manufacturing business, Miracle-Ear entered into an exclusive ten-year agreement with MEMSI for the supply of hearing aids.
As a result of the agreement with MEMSI Miracle-Ear began selling rebranded Siemens hearing aids and hearing aid accessories. For example, the Miracle-Ear "ME 1000" is available from Siemens as the "Pure 700," and the Miracle-Ear "MEBluConnect" is available from Siemens as the "Tek Bluetooth Wireless Hearing Aid Remote Control System." Similarly, Beltone Hearing Aids is a division of and sells hearings manufactured by Denmark-based GN Resound A/S, which also owns the Resound, Interton, and Otometrics brands.