Healthcare – AIM – M cap £80m – Price 19.50p – Flash
CREO MEDICAL
Consumables business divestment concludes
Creo Medical has completed the sale of the majority (51%) stake in its European consumable business to Chinese medical device manufacturer Micro-Tech for net proceeds of c €30m (c £25m). The deal valued the mature European business at €72m on an EV/sales multiple of 2.3x and an EV/EBIT multiple of 20x. The company expects to receive the proceeds, currently held in escrow, imminently. We believe it will materially improve the liquidity position of the company as its strives to commercially advance its core portfolio of electrosurgical devices and foster partnerships for its proprietary Kamaptive technology. We will present our updated estimates for the deal closure in due course.