Enovis Corp, which offers orthopaedic bracing, surgical implants and footcare solutions, said on Monday it had agreed to acquire Italian surgical implant manufacturer LimaCorporate for about 800 million euros ($850 million), including debt.
The announcement confirmed Reuters’ report, citing people familiar with the matter, earlier on Monday.
The acquisition will bolster the U.S. company’s reconstructive business, which makes shoulder, hip and knee implants used in surgeries, and expand its international footprint.
“We’ve got a lot of experience doing acquisitions and doing them well. And we’ve got a strong balance sheet that lets us do a large acquisition like this and still have a little bit more room for smaller things in the future,” Enovis CEO Matt Trerotola told Reuters in an interview.
Enovis, whose shares rose 3.2% in morning trade to reach a market value of $2.90 billion, generates most of its revenue through its prevention and recovery business that produces non-surgical devices and accessories.
The company will pay 700 million euros in cash and give Lima’s owners 100 million euros worth of stock as part of the deal.
Lima is controlled by private equity firm EQT AB, 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 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.
Source: Reuters.com