The acquisition of Lima is expected to strengthen Enovis’ reconstructive business and help expand the latter’s global presence with a complementary global customer base and product mix
LimaCorporate is a global orthopaedic company. (Credit: PR Newswire/ EQT)
US-based medical technology firm Enovis has agreed to acquire Italy-based orthopaedic implant manufacturer LimaCorporate for about €800m, including debt from EQT Private Equity.
Lima is an orthopaedic company engaged in the development of a range of implant solutions to restore motion. Its shoulder implants, designed using 3D printing technology, were approved by the US Food and Drug Administration (FDA) last year.
The transaction includes a €700m cash payment at closing and €100m in shares of Enovis common stock, which will be issued within 18 months after closing.
The acquisition of Lima is expected to strengthen Enovis’ reconstructive business, which creates shoulder, hip and knee implants used in surgeries.
It will help expand its global presence with a complementary global customer base and product mix.
The American medical technology company, which offers orthopaedic bracing, surgical implants and footcare solutions, will also enhance its efficiency with new advanced manufacturing sites and a portfolio of proven surgical solutions and technologies.
The deal is also anticipated to aid Enovis’ long-term goals of high-single-digit organic revenue growth and sustainable EBITDA margin expansion.
Enovis chairman and CEO Matt Trerotola said: “With Lima’s complementary surgical solutions and customers, we will have the opportunity to enlarge our profitable recon portfolio and further expand our global presence.
“In addition, this acquisition will enable us to deliver enhanced financial results through significant cross-selling revenue growth opportunities and meaningful cost synergies.”
Enovis, known as Colifax until last year, focuses on the prevention and recovery business that creates non-surgical devices and accessories.
Lima owns its proprietary Trabecular Titanium (TT) technology along with products like the Delta hip cup family and the Physica system knee.
LimaCorporate CEO Massimo Calafiore said: “Combining these two leading orthopaedic businesses into one global platform creates an exciting opportunity to build on the strengths of both Enovis and Lima in developing patient-tailored devices and orthopaedic products.
“I look forward to working with the Enovis team to create even greater opportunities for growth and continued success.”
The deal is anticipated to conclude in the first quarter of 2024 and is subject to applicable regulatory approvals and customary closing conditions.