Micro-Tech (Nanjing) Co., Ltd.

Micro-Tech Nanjing said it will buy a controlling stake in a Spanish dealer of medical apparatus for EUR36.7 million (USD41 million). Micro-Tech will acquire 51 percent of Creo Medical from its UK parent firm Creo Medical Group, the Nanjing-based company announced late yesterday. Navarra-based Creo Medical is the sales arm of Creo Medical Group, which is listed in London and focuses on minimally invasive endoscopic and robotic-assisted surgery. The unit’s clients include nearly 5,000 public and private hospitals, clinics, and other medical institutions in its largest markets of France, the United Kingdom, Belgium, Spain, and Germany. The transaction will help Micro-Tech to quickly enhance its product sales capabilities in Europe and leverage its strong research, development, and production to introduce more products and categories to Creo Medical, as well as ensure stable supplies, it said. Shares of Micro-Tech closed 1.3 percent higher at CNY59.24 (USD8.36) each in Shanghai, after earlier jumping by as much as 4.7 percent. The benchmark Shanghai Composite Index rose 0.7 percent. Creo Medical had a first-half net profit of EUR1.6 million (USD1.8 million) on revenue of EUR16.6 million, according to Micro-Tech. More than 90 percent of its earnings came from product sales for its parent company. Micro-Tech focuses on endoscopic diagnosis and treatment, tumor intervention, and minimally invasive neurosurgery device product lines. Its revenue was CNY1.3 billion (USD190 million) in the six months ended June 30, with CNY624 million (USD88.1 million) coming from overseas markets, according to its most recent earnings report.

Micro-Tech Nanjing said it will buy a controlling stake in a Spanish dealer of medical apparatus for EUR36.7 million (USD41 million). Micro-Tech will acquire 51 percent of Creo Medical from its UK parent firm Creo Medical Group, the Nanjing-based company announced late yesterday. Navarra-based Creo Medical is the sales arm of Creo Medical Group, which is listed in London and focuses on minimally invasive endoscopic and robotic-assisted surgery. The unit’s clients include nearly 5,000 public and private hospitals, clinics, and other medical institutions in its largest markets of France, the United Kingdom, Belgium, Spain, and Germany. The transaction will help Micro-Tech to quickly enhance its product sales capabilities in Europe and leverage its strong research, development, and production to introduce more products and categories to Creo Medical, as well as ensure stable supplies, it said. Shares of Micro-Tech closed 1.3 percent higher at CNY59.24 (USD8.36) each in Shanghai, after earlier jumping by as much as 4.7 percent. The benchmark Shanghai Composite Index rose 0.7 percent. Creo Medical had a first-half net profit of EUR1.6 million (USD1.8 million) on revenue of EUR16.6 million, according to Micro-Tech. More than 90 percent of its earnings came from product sales for its parent company. Micro-Tech focuses on endoscopic diagnosis and treatment, tumor intervention, and minimally invasive neurosurgery device product lines. Its revenue was CNY1.3 billion (USD190 million) in the six months ended June 30, with CNY624 million (USD88.1 million) coming from overseas markets, according to its most recent earnings report.

A listed South Wales-based medical device company is to sell a stake of its subsidiary to a Chinese manufacturer at an equity value of €72m. Creo Medical Group has entered into a binding agreement with Micro-Tech (NL) International BV, a wholly owned subsidiary of Micro-Tech (Nanjing) Co. Ltd (Micro-Tech) for the sale of 51 per cent of the issued share capital of Creo Medical S.L.U. (Creo Europe), a wholly owned subsidiary of Creo, on a cash-free, debt-free basis. The net proceeds payable to Creo from the sale was said to strengthen the group's balance sheet, enabling it to continue to invest in its core Creo and Kamaptive business and meet its commercial and operational objectives. Creo Europe, formerly Albyn Medical S.L., was acquired by Creo in 2020 as a route to expand its commercial platform in Europe. This was by providing a direct route-to-market for Creo's full suite of advanced energy devices and complementing these through an Original Equipment Manufacturer (OEM) strategy to develop the Creo brand in the market with increased long-term security in the supply chain. 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 was founded in 2000 and is the market leader in endoscopic therapy medical devices in China. It has an approximate market share of 30 per cent of China's endoscopy device market, designing, manufacturing and selling a range of minimally invasive medical instruments. Along with other customary conditions, completion of the sale is contingent on Micro-Tech obtaining outbound direct investment clearance in China along with foreign direct investment clearances in Spain, France, Belgium and Germany. While there is no certainty as to receipt or timing of receipt of the necessary approvals to enable completion, it is expected that completion will take place during Q1 2025 dependent on these relevant clearances being obtained. Craig Gulliford, chief executive of Creo, said: "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."