Creo Medical achieves second Albyn earn-out target

14th Apr 2023 12:10

(Sharecast News) - Creo Medical Group announced on Friday that it has successfully achieved the earn-out target for the 12 months ended July last year, over the acquisition of Albyn Medical.

The AIM-traded medical device company 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.

It said the remaining 10% of Albyn's issued share capital was to be acquired over the following two years for a consideration calculated against performance targets.

In March last year, Creo confirmed that the earn-out target for the 12 months period to July 2021 had been achieved in full, and that it had acquired 50% of the remaining 10% of the issued capital.

On Friday, it said that after the continued successful performance of Albyn, the earn-out target for the year ended July 2022 had also been achieved in full, leading to the acquisition of the remaining 5% of Albyn's issued share capital for consideration of €1.2m.

The second tranche of the earn-out payment, being €1m, had been satisfied in cash.

"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," said chief executive officer Craig Gulliford.

"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."

At 1119 BST, shares in Creo Medical Group were up 1.16% at 27.31p.

Reporting by Josh White for Sharecast.com.