Albyn Medical earn out update

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
Richard Rees (CFO)	[phone]
Cenkos Securities plc	[phone]
Stephen Keys / Camilla Hume (NOMAD)
Michael Johnson / Russell Kerr (Sales)
Numis Securities Limited (Joint Broker) Freddie Barnfield / James Black / Duncan Monteith	[phone]
Walbrook PR Ltd	Tel: [phone] or [e-mail]
Paul McManus / Sam Allen  / Phillip Marriage	Mob: [phone]

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

 

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