Enovis to buy prosthetic implants maker LimaCorporate for $850 mln (updated)

Enovis

25/09/2023 11:35

(Changes sourcing to company's statement, adds deal background
in paragraph 3)
    By David  Carnevali
       NEW YORK, Sept 25 (Reuters) - Enovis Corp  ENOV.N , a
U.S. maker of orthopedic bracing and shoe inserts, said on
Monday it had agreed to acquire Italian surgical implant
manufacturer LimaCorporate for about 800 million euros ($850
million), including debt. 
    The acquisition will bolster the company's reconstructive
business, which makes shoulder, hip and knee implants used in
surgeries, and expand its international footprint. Enovis
generates most of its revenue through 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 company said.
Reuters had reported about the deal on Monday, citing people
familiar with the matter.
    Lima is controlled by private equity firm EQT AB  EQTAB.ST ,
which had also considered an initial public offering for the
company, Reuters reported in May.
    Enovis expects Lima to contribute up to $300 million to its
revenue in 2024, and generate cost synergies of about $40
million, Enovis 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 and Vinay Dwivedi)
 ((David.Carnevali@thomsonreuters.com))