Acquisition of leading balkan distributor
Cryo-Save Group N.V. (AIM: CRYO, “Cryo-Save”, or “the Group”), Europe’s leading adult stem cell storage bank, has acquired Cryo-Save Balcanica S.A. (“Cryo-Save Balcanica”) of Athens, for an initial consideration of €4.1 million payable in cash. The acquisition of the Group’s leading distributor in the Balkans, provides Cryo-Save with a platform for further strong growth and increased profitability, and is expected to be earnings enhancing with immediate effect.
The acquisition has been effected by the purchase of the remaining 50% of the shares in Cryo-Save Balcanica which the Group did not already own. The consideration consists of an initial consideration of €4.1 million and a deferred payment based on the performance of Cryo-Save Balcanica during a three year period. The total consideration under the agreement has been capped to avoid the need for shareholder approval.
Cryo-Save Balcanica has been the Group’s leading distributor in Greece since 2005, one of Cryo-Save’s largest markets. Earlier this year the Group extended its business into Romania, Bulgaria, Croatia, Serbia and Slovenia. Acquiring the outstanding shares in Cryo-Save Balcanica will now enable the Group to develop its business more aggressively in the Balkan region.
Cryo-Save Balcanica achieved revenues of €5.1 million and an operating profit of €0.3 million in the year to 31 December 2007. Estimated revenues for the period 1 January to 30 June 2008 were €2.2 million with operating income of €0.3 million.
Rob Koremans, Chief Executive, commented:
The combination of this acquisition with Sejtbank in Hungary, which we acquired earlier this year, strengthens our position in the Balkan region. It provides a sound foundation for further strong organic growth, particularly in 2009, throughout the Balkan region.
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