Acquisition of leading spanish distributor
Cryo-Save Group N.V. (AIM: CRYO, “Cryo-Save” or “the Group”), Europe’s leading adult stem cell storage bank, has acquired its Spanish distributor, Crio Cord, S.L. (“Crio Cord”) for an initial consideration of €16 million payable in cash and a deferred performance payment, payable annually on the achievement of certain goals until 2011. Cryo-Save expects the acquisition to be earnings enhancing with immediate effect.
Also the Group has today released a trading update for the six months ended 30 June 2008.
Crio Cord is the fast growing, leading Spanish stem cell storage business. In the first five months of 2008, the number of samples stored grew 80% over the same period last year. Currently Spain is Cryo-Save’s largest market.
A key component of Crio Cord’s rapid growth is that it has combined high quality stem cell storage with innovative contracts with the main private insurance companies and hospitals across Spain. This has enabled its brand and the business of Crio Cord to grow rapidly. Crio Cord started its operations in Madrid and is now successfully operating throughout Spain. Following completion, the management of Crio Cord will remain with the Group, allowing Cryo-Save to utilise its experience to roll out this successful model across the Group.
In the year to 31 December 2007 Crio Cord reported revenues of €4.2 million and profits before taxation of €1.8 million under Spanish GAAP. Estimated adjustments prepared under IFRS for the period 1 January 2008 to 30 June 2008 would show revenues of €2.7 million and profits before taxation of €1.2 million.
The acquisition was effected by the purchase of the Portuguese holding company of Crio Cord, Valor Conexo (which controls 66.75% of Crio Cord) and the outstanding 33.25% from the management of Crio Cord. The total consideration under the agreement has been capped.
Rob Koremans, Chief Executive, commented:
This acquisition is another important step in executing our strategy to broaden and deepen our coverage in both existing and new geographic markets. It builds on our leading position in Europe, in one of the fastest growing markets. Crio Cord will give the Group an excellent platform for new product launches in Spain. In addition the whole Group will benefit from the skills and knowledge of the Crio Cord management team.
For further details
+ 31 (0)575 548998
Rob Koremans, Chief Executive
Arnoud van Tulder, Chief Financial Officer
+ 44 (0) 20 3205 7500
Jos Trusted/Marc Young
+ 44 (0) 20 7457 2020
Adrian Duffield/Jon Davies