Enovis, a medical technology growth company, has announced a definitive agreement to acquire LimaCorporate, a privately held global orthopaedic company focused on restoring motion through an innovative portfolio of implant solutions.
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Concept of deal being agreed
The acquisition has an enterprise value of approximately €800 million, consisting of a €700 million cash payment at closing and €100 million in shares of Enovis common stock.
Founded in 1945, Lima is an orthopedic company with diversified revenues that has grown at a high single digit CAGR over the last 10 years, increasing into the low teens in the last several years. Lima’s technological solutions, including digital innovation and patient-tailored hardware, are developed to help surgeons and improve patient outcomes following joint replacement surgery.
The addition of Lima will provide several strategic benefits to Enovis including:
- Establishing a ~$1 billion revenue reconstruction business with approximately 50% of revenues in the fast-growing extremities markets
- Expanding international scale with a complementary global customer base and product mix
- Improving efficiency with state-of-the-art manufacturing facilities and a strong innovation engine
- Adding a complementary portfolio of proven surgical solutions and technologies, including 3D printed Trabecular Titanium and a comprehensive revision offering
- Creating robust cross-selling opportunities and approximately $40 million in cost synergies to be fully realised by year three after closing through supply chain optimisation and cost consolidation
- Supporting Enovis’ long-term goals of high-single digit organic revenue growth and sustainable EBITDA margin expansion
Matt Trerotola, chair and chief executive officer of Enovis, said: “We are confident the acquisition of Lima will enable us to build on our strong growth trajectory and global leadership in orthopaedic solutions to create immediate and sustainable value for our patients, customers, employees and shareholders. 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.”
Massimo Calafiore, chief executive officer of Lima, added: “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 €800 million transaction includes a cash payment of €700 million at closing, and €100 million in shares of Enovis common stock expected to be issued within 18 months after closing. Enovis plans to finance the cash portion of the consideration through a combination of cash on hand, availability under its existing revolving credit facility, and committed financing from UBS Investment Bank and J.P. Morgan Securities LLC.
