Acquisition of italian service company
Cryo-Save Group N.V. (AIM: CRYO, “Cryo-Save” or “the Group”), Europe’s leading stem cell bank, announces that it has agreed to acquire Salus Futura Ltd, United Kingdom, which holds all shares of Salus Futura Srl, Italy (“Salus Futura”), for an initial consideration of €0.4 million payable in cash and a deferred performance related payment, payable annually on the achievement of certain goals until 31 May 2012. The total consideration under the agreement has been capped to avoid the need for shareholder approval. Cryo-Save expects the acquisition to be earnings enhancing on completion.
Salus Futura, established in 2007, is an Italian stem cell storage marketing and distribution company. Processing and storage will be performed by Cryo-Save. Salus Futura concentrates primarily on customer acquisition through diagnostic centres and private clinics. All of Salus Futura’s business comes from Italy. In the first quarter of 2009, the number of samples stored increased by 280% over the same period last year, and was 13% up on the fourth quarter of 2008.
Following completion, key staff of Salus Futura will remain with the Group, allowing Cryo-Save to utilise its experience to further roll out this successful model in Italy. The Salus Futura organisation will be integrated in the Cryo-Save Italy organisation.
In the year to 31 December 2008 Salus Futura reported aggregated revenue of €0.5 million and a start up loss of €0.1 million.
Cryo-Save expects to complete this transaction before the end of June 2009.
Rob Koremans, Chief Executive, commented:
This acquisition fits very well with our own successful Italian operation, not only because of the valuable contracts with diagnostic centres and clinics, but also geographically within the large Italian market. It will further strengthen our leading position in Italy, our third largest market, where we have seen growth during the last months. Also our other subsidiaries in many other countries continue to perform well in line with our expectations, during the first five months of 2009.
For further details
+ 31 (0) 575 548998
Rob Koremans, Chief Executive
Arnoud van Tulder, Chief Financial Officer
Daniel Stewart & Company plc
+ 44 (0) 20 7776 6550
Simon Leathers/Charlotte Stranner
+ 44 (0) 20 7457 2020
Adrian Duffield/Rozi Morris