Medical device company Creo has announced the sale of 51% of a subsidiary at an equity value of €72 million.
The Chepstow-based company said the net proceeds payable to Creo from the sale would strengthen the Group’s balance sheet, enabling it to continue to invest in its core Creo and Kamaptive business and deliver on its commercial and operational objectives. The proceeds are expected to be approximately €30 million, which will be payable in cash on completion.
Creo Medical Group has entered into a binding agreement with Chinese market-leader Micro-Tech for the sale of 51% of the issued share capital of Creo Europe, a wholly owned subsidiary of Creo, at an equity value of €72 million on a cash-free, debt-free basis.
Creo Europe – formerly Albyn Medical S.L. – was acquired by Creo Medical Group plc in 2020 as a route to expand its commercial platform in Europe.
Since then, the company said, Creo Europe has grown organically and through acquisition.
Today, Creo Europe manufactures and distributes specialist Gastroenterology, Urology and Endoscopy products to healthcare providers across Europe.
Creo Europe’s managing director, Luis Collantes, will continue to manage and operate the business with the support of both Creo and Micro-Tech. Alongside Micro-Tech, Creo will retain a number of seats on the board of Creo Europe.
Creo and Micro-Tech have agreed to explore a co-branding and registration strategy for certain Creo core products into the large Chinese market.
Micro-Tech is the market leader in endoscopic therapy medical devices in China with an approximate market share of 30% of China’s endoscopy device market.
Craig Gulliford, Chief Executive Officer of Creo, said:
“Micro-Tech is not only China’s leading endoscopic instrument company, but also a significant global brand in the GI Endoscopy market. The sale represents an excellent strategic partnership for us and will support our continued commercial growth in the APAC region through product registration and co-branding in China.
“Furthermore, Creo Europe will also gain access to the wider Micro-Tech product portfolio and access to a complementary range of products under the Creo brand, ensuring the same confidence in long-term supply to our developing global sales channels. This strategic partnership also enables a global leader in our market to gain access to our advanced energy platform in China, as well as opening up exciting co-development opportunities in our quest to be at the forefront of advanced energy in the GI endoscopy and minimally invasive surgery markets.
“Creo Europe has performed strongly since its acquisition and subsequent integration, with an enlarged product portfolio and enhanced Creo product brand, with sales now established in the US and LATAM markets. We are delighted to be able to retain a significant interest in Creo Europe following the transaction, whilst generating a return on our initial investment, strengthening our balance sheet to invest in our core strategy.
“The potential of this partnership to accelerate growth through Creo Medical Europe, with a harmonised brand and product strategy across our global commercial operations outside Europe, is really exciting and will enable us to enhance our customers’ procedure repertoire and further strengthen the clinical benefits we can deliver for patients.”
Xiaohui Long, Chairman of Micro-Tech, said:
“As a leading Chinese manufacturer of endoscopic diagnostic and therapeutic devices, Micro-Tech has been continuously expanding its overseas sales channels and seeking valuable partnerships for innovative products. Creo’s subsidiary, Creo Europe, is a key medical device distributor in Western Europe, and its sales channels and products are highly complementary to those of Micro-Tech. Upon completion of this acquisition, Micro-Tech will be able to introduce more products to Creo Europe, empower Creo’s R&D and market expansion efforts, and bring new momentum to the development of both companies. Micro-Tech, Creo and Creo Europe share a high degree of strategic alignment and synergy and we also share a common goal – to provide better medical solutions for patients and doctors. This acquisition will be mutually beneficial to all parties, helping us achieve our shared growth goals.”
