Enovis to buy prosthetic implants maker LimaCorporate for $850 mln -sources

Enovis

25/09/2023 10:00

By David  Carnevali
       NEW YORK, Sept 25 (Reuters) - Enovis Corp  ENOV.N , a
U.S. maker of orthopedic bracing and shoe inserts, has agreed to
acquire Italian surgical implant manufacturer LimaCorporate SpA
for approximately 800 million euros ($850 million), including
debt, according to people familiar with the matter. 
    The acquisition will bolster Enovis' reconstructive
business, which makes shoulder, hip and knee implants used in
surgeries, and expand its international footprint. Enovis
generates most of its revenue in its prevention and recovery
business, which produces non-surgical devices and accessories.
    Enovis, which has a market value of $2.8 billion, will pay
700 million euros in cash and give Lima's owners 100 million
euros worth of stock as part of the deal, the sources said. They
spoke on condition of anonymity ahead of the deal's official
announcement later on Monday.
    Lima is controlled by private equity firm EQT AB  EQTAB.ST ,
which Reuters reported in May also considered an initial public
offering for the company.
    Enovis expects Lima to contribute up to $300 million to its
revenue in 2024, and generate cost synergies of about $40
million, the sources said. Enovis forecasts that its 2023
revenue will be about $1.7 billion.
    Based in Wilmington, Delaware, Enovis was known as Colifax
until 2022, when it spun out its welding business into a new
company called ESAB Corp  ESAB.N  so it could focus on its
medical business. 
    Lima, headquartered in northern Italy, uses 3D printing
technology to make shoulder implants that promote bone growth.
The implants were approved last year by the U.S. Food and Drug
Administration. 
    The company was launched as a family business in 1945 and
agreed to sell a majority stake to EQT in 2015. 

 (Reporting by David Carnevali in New York; Editing by Sonali
Paul)
 ((David.Carnevali@thomsonreuters.com))