REG - Creo Medical Group - Albyn Medical earn out update

Creo MedicalAnnouncement

16/03/2022 07:00

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RNS Number : 8930E  Creo Medical Group PLC  16 March 2022

Creo Medical Group plc

("Creo" the "Company" or the "Group")

 

Albyn Medical earn out update

 

Creo Medical Group plc (AIM: CREO), a 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 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 proceeding two years for a consideration
calculated against performance targets.

 

The Company confirms that due to the successful performance of Albyn, the
Company has acquired 50% of the remaining 10% of the issued share capital of
Albyn for a consideration of €1.2m and the first tranche of the Earn Out
payment, being €1.7m, has been satisfied in cash.

 

The successful acquisition has increased the Group's revenue year-on-year and
the integration of Creo's European direct sales teams is now yielding new
users of the Group's core technology.  Albyn is now operating under the Creo
Medical brand with its product range offering a mix of proprietary technology,
own-brand labelled and third-party devices providing diagnostic, therapeutic
and hygiene / cross-contamination control to a customer base of over 4,600,
including hospitals, hospital groups and doctors' offices in both the state
and private sectors.

 

As a result of the commonality of Albyn's technology with Creo's core
technology and a highly complementary product range, the acquisition is
delivering on an integration strategy to allow more products to be sold in a
broader geographical footprint whilst leveraging the talented direct sales
team across the wider Creo Group to accelerate the roll-out of Creo's core
technology and opening up additional opportunities for the Group.

 

Craig Gulliford, Chief Executive Officer of Creo, commented: "That the Albyn
team have successfully fulfilled the acquisition earn out criteria shows that
they are performing well in what has been a challenging period given the
pandemic, and they are now a fully integrated part of the Group. We're
delighted to see that the 'Buy' element of our 'Build, Buy, Partner' strategy
is yielding positive results."

 

Enquiries:

 

 Creo Medical Group plc                              www.creomedical.com (http://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)             +44 (0)20 7260 1000

 Freddie Barnfield / James Black / Duncan Monteith

 Walbrook PR Ltd                                     Tel: +44 (0)20 7933 8780 or creo@walbrookpr.com
 Paul McManus / Sam Allen /                          Mob: +44 (0)7980 541 893 / +44 (0)7502 558 258 / +44 (0)7867 984 082

 Phillip Marriage

 

 

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
(http://www.creomedical.com)

 

 

 

 

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