REG - Creo Medical Group - Albyn Medical earn out update

Creo MedicalAnnouncement

14/04/2023 07:00

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RNS Number : 1741W  Creo Medical Group PLC  14 April 2023

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 (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 (mailto: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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