Proposed Sale of 49% Interest in Creo Medical SL
Creo Medical Group plc has entered into a non-binding agreement to sell its 49% stake in Creo Medical S.L. to a company owned by the CEO of Creo Medical S.L. for a price based on the carrying value as of December 31, 2025, on a cash-free, debt-free basis, with consideration to be paid in cash. This proposed transaction, which is subject to due diligence, definitive documentation, and financing approvals, aims to strengthen Creo's balance sheet and allow it to focus on its growth strategy, while Creo will maintain a distribution relationship with Creo Medical S.L. in key European markets.
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THIS ANNOUNCEMENT WAS DEEMED BY THE COMPANY TO CONTAIN INSIDE INFORMATION AS STIPULATED UNDER THE MARKET ABUSE REGULATIONS (EU) NO. 596/2014 AS THEY FORM PART OF UK DOMESTIC LAW BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018. WITH THE PUBLICATION OF THIS ANNOUNCEMENT, THIS INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN.
Creo Medical Group plc
("Creo", the "Company" or the "Group")
Proposed Sale of 49% Interest in Creo Medical SL
Creo Medical Group plc (the "Company" or "Creo") announces that it has entered into a non-binding agreement ("LOI") with a company (the "Purchaser") owned by Luis Collantes, the CEO of Creo Medical S.L., regarding the potential sale and purchase of the Company's entire 49% shareholding in Creo Medical S.L. ("Creo Medical Europe" or "CME") (the "Proposed Transaction").
The LOI sets out the principal terms on which the Purchaser would acquire Creo's remaining minority interest in CME, either directly or through a newly incorporated acquisition vehicle. The Proposed Transaction is based on an indicative enterprise value for CME in line with its carrying value as at 31 December 2025, subject to customary closing adjustments and on a cash-free, debt-free basis. Consideration is expected to be satisfied in cash in full at completion.
The Proposed Transaction remains subject to, inter alia, shareholder pre-emption processes being undertaken, satisfactory completion of due diligence by the Purchaser, agreement of definitive transaction documentation between the parties and receipt of final financing approvals. The parties are targeting completion within three months. There can be no certainty that the Proposed Transaction will progress to definitive transaction documentation and complete, nor as to the final terms of the Proposed Transaction.
The Proposed Transaction would enable the Company to realise value from its minority investment and further strengthen its balance sheet to allow the Company to continue to deliver on its accelerating growth strategy, reach profitability and achieve sustainable cash flow generation. Creo will maintain its strong relationship with CME, with CME to continue to act as the Company's distributor in key European jurisdictions for its advanced energy products. On completion, the Company will not participate in any future profits or dividends from CME.
A further announcement in respect of the Proposed Transaction will be made in due course.
Craig Gulliford, Chief Executive Officer of Creo Medical, said:
"This proposed transaction represents an opportunity to crystallise value from our minority interest in CME at an attractive valuation. It supports our strategic priority of simplifying the Group and strengthening the balance sheet, while enabling continued investment in our product range, commercial expansion and other commercialisation opportunities with our technology platform."
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