Medical device company Creo Medical Group plc (AIM: CREO) announced on Wednesday that it has entered into a strategic transaction with Micro-Tech (NL) International B.V., a subsidiary of Micro-Tech (Nanjing) Co Ltd (SHA: 688029), to sell 51% of Creo's European subsidiary, Creo Medical S.L.U., for EUR36.7m in cash on a debt-free basis.

The deal values the subsidiary at EUR72m and will strengthen Creo's balance sheet by providing approximately EUR30m in proceeds.

This partnership grants Creo access to Micro-Tech's expansive OEM product portfolio, enhancing its distribution capabilities across Europe. Creo Europe, acquired in 2020, has since grown, offering specialist Gastroenterology, Urology and Endoscopy products, including Creo-branded endotherapy devices.

Micro-Tech, a leader in China's endoscopic therapy device market, aims to expand its sales channels in Europe through this acquisition. Creo Europe will continue to sell its own products while benefiting from Micro-Tech's global manufacturing and distribution expertise.

The transaction is expected to close in Q1 2025, subject to regulatory approvals in China, Spain, France, Belgium and Germany.