Morphosis Capital Fund I, a private equity fund focused on Romanian SMEs, announces the closing of the investment in Cronos Med, leader in 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.
About Cronos Med
Cronos Med has been a leader in the Romanian aesthetic medicine market for over three decades and currently operates three clinics and a hospital. Whether it is specialties such as Aesthetic Surgery, ENT, General Surgery, Oculo-Plastic Surgery, or Dermatology, Obstetrics and Gynecology or Nutrition, Cronos Med specialists approach health and beauty in an integrative manner, paying special attention to patients’ needs, personalizing up to the smallest detail each intervention plan.
About Dr. Constantin Stan
The founder of Cronos Med, Dr. Constantin Stan, is one of the world’s top plastic surgeons. He is the inventor of the Ellman Mono RF Stan Forceps, widely used in aesthetic operating rooms around the world, of breast implants, Diagon Gel4Two, the most stable prostheses, of the computerized patient measurement system, in breast augmentations, and of the most advanced micro-needling technology, Cronosderm.
Several techniques are attributed to Dr. Stan, both in breast surgery, respectively, Multiplane, and in facial surgery, respectively, Minimally Invasive Vertical Anchor Lift.
He has over 10,000 interventions in the 30 years of medical practice started in the Bacau centre and over 1,000 participations with presentations at international congresses and conferences, webinars and plastic surgery workshops. He is considered the surgeon with the most extensive experience in anatomical prostheses.
He is a Magna Cum Laude graduate in Medicine in Iasi, and has a master’s degree in aesthetic surgery from Milan, and a Phd. He has a double specialization in Plastic and Reconstructive Surgery, under the guidance of Prof. Dr. Ioan Lascăr, at the Floreasca Emergency Hospital, and in ENT, under the coordination of Prof. Dr. Dorin Hociotă. He is a member of the Romanian Society of Plastic and Reconstructive Surgery, of the French Society of Aesthetic Surgery, ISAPS, IPRAS, ASAPS.
He constantly holds courses for the young surgeons form the entire world and is one of the most active doctors in the field of education.
Dr. Stan was awarded by the Japanese Society of Plastic Surgery, the South American Society, but also by ISAPS and IMCAS for his improvements brought to the aesthetic surgery.
About Morphosis Capital
Morphosis Capital is a private equity fund with 50 million euro committed capital. Established in December 2018 by four Romanian entrepreneurs, Simona Gemeneanu, Gabriela Dumitru, Dragos Petre, and Andrei Gemeneanu, the Fund aims to contribute to the development and transformation of the Romanian SMEs. The European Investment Fund (EIF), the leading financing platform for European SMEs, co-financed through the Regional Operational Programme, is the anchor investor in Morphosis Capital, while the founders themselves are the co-investors in the fund. Morphosis Capital invests between five to ten million euro in high growth Romanian companies from sectors such as niche healthcare, technology, manufacturing and B2B services, which have a strong potential for international expansion and an EBITDA of a minimum half a million euro. Morphosis Capital portfolio includes DocProcess, Medima Health, Dr Leahu Dental Clinics, EMI and Cronos Med.