Morphosis Capital Fund I, a private equity fund focused on Romanian SMEs, announces the closing of the investment in Cronos Med, operating on the medical aesthetics market. Following this transaction, Morphosis Capital forms a partnership with the founder of Cronos Med, Dr Constantin Stan, and with Andreea Berecleanu, minority shareholder, to develop the largest chain of medical aesthetic clinics in Romania.
“Cronos Med means, above all, immense love and respect for people. These two considerations have always and unconditionally been the basis of all the decisions we have made throughout our lives. And I can say, without making a mistake, that these were my best guides. Thus, after 30 years full of work and challenges, I decided it was time to support Cronos Med teams and clinics to move forward, reach other cities in Romania, and provide aesthetic medical quality at the highest level to as many patients as possible. From my position as the founder-investor, as well as mentor for existing and future teams of doctors, I support the Morphosis investment because I am sure that it will be providential for the people we address, the beneficiaries of any strategic business movement. Also, Cronos Med remains the place where young doctors are and will be welcome to perform,” stated Dr Constantin Stan.
Cronos Med was founded in 1991 in Bacau by reputable surgeon Constantin Stan, who has over 30 years of experience in aesthetics and plastic surgery. The company operates a premium network of specialist medical centres for aesthetic and plastic medicine, that are amongst Romania’s most extensive and modern clinics. Cronos Med has three clinics and a hospital in Bucharest and Bacau. The Group is the largest medical aesthetics chain by turnover in Romania. In 2020, despite an extremely difficult pandemic year, the Group recorded a turnover of 4.3 million euros. In the last three years, Cronos Med registered a Compound Annual Growth Rate of almost 40%.
Cronos Med clinics cover a broad spectrum of beauty treatments: aesthetic, plastic and reconstructive surgery and minimally invasive aesthetic treatments. The medical clinic includes the following specialties: surgery, dermatology, gynaecology, ophthalmology, ENT, nutrition-diabetes, and psychology.
“We are excited about the completion of this transaction and the partnership with Dr Constantin Stan and Andreea Berecleanu, two professionals with an impeccable reputation in their fields of activity. We are also looking forward to continuing the Cronos Med Group’s development process and consolidating its position as the undisputed leader in aesthetic and plastic medicine in Romania at the highest possible level. Three decades ago, the medical aesthetic market in Europe was a small niche, where a few elite doctors offered a limited range of treatments for a small number of patients. Today, due to the growing awareness of consumers about the benefits of aesthetic treatments, the market is accelerating its development. We are confident that the Cronos Med Group is at the forefront of this development, thanks to the medical team led by Dr Stan, a pioneer in aesthetic and plastic surgery in Romania, but with an innovative and fundamentally significant contribution internationally,” stated Andrei Gemeneanu, Managing Partner, Morphosis Capital.
The deal value is within the standard range of Morphosis Capital Fund I, between 5 and 10 million euros. The capital infusion from Morphosis Capital will contribute to the consolidation of Cronos Med’s position as national leader in the medical aesthetics sector and the expansion of the network of clinics in key cities across Romania.
The transaction was facilitated by the law firm RTPR, advising both Morphosis Capital and Cronos Med. Mazars provided financial and tax due diligence, while Candesic, leading healthcare consulting firm headquartered in London, provided commercial due diligence. The Romanian Competition Council approved the investment on August 25, 2021.
The investment in Cronos Med is the fifth transaction for Morphosis Capital, which currently holds stakes in DocProcess, Medima Health, Dr Leahu Dental Clinics, and EMI. It is also the third and last investment of Morphosis Capital Fund I in the healthcare sector.