Last checked at 14 Apr 2023 07:00
Creo Medical Group plc
("Creo" the "Company" or the "Group")
Albyn Medical earn out update
Creo Medical Group plc (AIM: CREO), the medical device company focused on the emerging field of surgical endoscopy, provides an update on the earn out agreement related to the acquisition of Albyn Medical S.L. ("Albyn") as announced on 24 July 2020.
Creo acquired Albyn, now known as Creo Medical S.L., in July 2020 for an equity value of €24.8m plus up to €2.7m of performance related consideration payable over two years (the "Earn Out"). Ninety per cent. of Albyn's issued share capital was acquired at closing in 2020, with the remaining 10 per cent. of Albyn's issued share capital to be acquired over the following two years for a consideration calculated against performance targets. In March 2022 the Company confirmed that the earn out target for the 12 month period ending July 2021 had been achieved in full and that it had acquired 50% of the remaining 10% of the issued capital.
The Company now confirms that due to the continued successful performance of Albyn the earn out target for the 12 month period ending July 2022 has also been achieved in full. Accordingly, the Company has acquired the remaining 5% of the issued share capital of Albyn for a consideration of €1.2m and the second tranche of the Earn Out payment, being €1m, has been satisfied in cash.
The acquisition of Albyn has provided a direct route-to-market for the Company, yielding new users of the Group's core technology across Europe. Now fully integrated and operating under the Creo Medical brand, Albyn's highly complementary product range offers a mix of Creo's own manufactured products, Creo branded (third party manufactured) products, and third-party branded (i.e. distributed) products, each sold predominantly in UK and major European markets via well-established sales teams. The acquired business has continued to grow since acquisition and during 2022 the Company introduced a number of its Endotherapy products to the US market with the aim of complementing the Group's core technology products and providing physicians and clinicians a complete product solution for everyday endoscopic procedures.
Craig Gulliford, Chief Executive Officer of Creo, commented: "The complementary acquisition of Albyn Medical has proven to be a strong strategic fit, providing Creo with an established platform that has accelerated the development of our commercial footprint across Europe.
"Satisfying the earn out criteria in full demonstrates the continued performance of Creo Medical's team in Europe whilst validating our rationale for the acquisition. Having fully integrated Albyn into the Group, we are now leveraging the economies of scale and look forward to developing this part of our business further with the commercialisation of Creo's core technology."
Enquiries:
Creo Medical Group plc | www.creomedical.com |
Richard Rees (CFO) | +44 (0)1291 606 005 |
Cenkos Securities plc | +44 (0)20 7397 8900 |
Stephen Keys / Camilla Hume (NOMAD) | |
Michael Johnson / Russell Kerr (Sales) | |
Numis Securities Limited (Joint Broker) Freddie Barnfield / James Black / Duncan Monteith | +44 (0)20 7260 1000 |
| |
Walbrook PR Ltd | Tel: +44 (0)20 7933 8780 or creo@walbrookpr.com |
Paul McManus / Sam Allen / Phillip Marriage | Mob: +44 (0)7980 541 893 / +44 (0)7502 558 258 / +44 (0)7867 984 082 |
About Creo Medical
Creo Medical is a medical device company focused on the development and commercialisation of minimally invasive electrosurgical devices, bringing advanced energy to endoscopy.
The Company's vision is to improve patient outcomes through the development and commercialisation of a suite of electrosurgical medical devices, each enabled by CROMA, powered by Kamaptive. The Group has developed the CROMA powered by Kamaptive full-spectrum adaptive technology to optimise surgical capability and patient outcomes. Kamaptive is a seamless, intuitive integration of multi-modal energy sources, optimised to dynamically adapt to patient tissue during procedures such as resection, dissection, coagulation and ablation of tissue. Kamaptive technology provides clinicians with increased flexibility, precision and controlled surgical solutions. CROMA currently delivers bipolar radiofrequency ("RF") energy for precise localised cutting and focused high frequency microwave ("MW") energy for controlled coagulation and ablation via a single accessory port. This technology, combined with the Group's range of patented electrosurgical devices, is designed to provide clinicians with flexible, accurate and controlled clinical solutions. The Directors believe the Company's technology can impact the landscape of surgery and endoscopy by providing a safer, less-invasive and more cost-efficient option for procedures.
For more information, please refer to the website www.creomedical.com