CHEPSTOW: Creo Medical Group plc has signed a non-binding letter of intent to sell its entire 49% stake in Creo Medical S.L. to a company owned by Luis Collantes, the CEO of the Spanish subsidiary, in a cash deal aimed at bolstering the parent company’s balance sheet.
The proposed transaction values the European business, known as CME or Creo Medical Europe, at an enterprise price in line with its carrying value as of Dec. 31, 2025, on a cash-free, debt-free basis and subject to customary closing adjustments. The buyer, a company controlled by Collantes, may acquire the stake directly or through a newly formed acquisition vehicle.
Creo Medical Group CEO Craig Gulliford said the move would allow the company to realize value from its minority investment at an attractive valuation while supporting strategic priorities of simplifying the group and strengthening the balance sheet.
“It supports our strategic priority of simplifying the Group and strengthening the balance sheet, while enabling continued investment in our product range, commercial expansion and other commercialisation opportunities with our technology platform,” Gulliford said.
Completion of the deal remains subject to shareholder pre-emption processes, satisfactory due diligence by the purchaser, final financing approvals and agreement on definitive transaction documents. The parties are targeting completion within three months, though the company cautioned there can be no certainty the transaction will proceed.
If completed, consideration would be paid in full in cash at closing. Creo would not participate in any future profits or dividends from CME but said it would maintain a strong relationship with the subsidiary, which will continue to act as the company’s distributor for its advanced energy products in key European jurisdictions.
Creo said the divestiture would enable it to further strengthen its balance sheet, allowing the company to continue delivering on its accelerating growth strategy, reach profitability and achieve sustainable cash flow generation.
