Enovis to acquire implant maker LimaCorporate for 800 million euros in cash and stock

Medical technology company Enovis Corp. (ENOV) said Monday it has reached an agreement to acquire LimaCorporate S.p.A., a privately held orthopedic company that specializes in restoring motion using implants, for 700 million euros ($745 million) in cash at closing and another EUR100 million in Enovis stock. The deal is expected to create a $1 billion revenue reconstruction business with about half of that stemming from the fast-growing extremities business. The deal will add a portfolio of surgical technologies, including 3-D printed trabecular titanium, a lightweight biomaterial. Enovis is expecting Lima to generate sales of $290 million to $300 million in 2024 and to close early in the year. Enovis is sticking with its full-year guidance of organic sales growth of 7% to 7.5% for 2023, as well as adjusted per-share earnings of $2.22 to $2.36. The deal is expected to be neutral to slightly accretive to 2024 adjusted EPS and accretive in 2025 and beyond. The deal will be financed with a mix of cash in hand and an existing revolving credit facility, as well as committed financing from UBS and JPMorgan. Enovis shares are down 3.5% in the year to date, while the S&P 500 has gained 12.5%.

-Ciara Linnane

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09-25-23 0614ET

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