Enovis to buy prosthetic implants maker LimaCorporate for $850 mln -sources

By David Carnevali

NEW YORK, Sept 25 (Reuters) - Enovis Corp, a U.S. maker of orthopedic bracing and shoe inserts, has agreed to acquire Italian surgical implant manufacturer LimaCorporate SpA for approximately 800 million euros ($850 million), including debt, according to people familiar with the matter.

The acquisition will bolster Enovis' reconstructive business, which makes shoulder, hip and knee implants used in surgeries, and expand its international footprint. Enovis generates most of its revenue in 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 sources said. They spoke on condition of anonymity ahead of the deal's official announcement later on Monday.

Lima is controlled by private equity firm EQT AB, which Reuters reported in May also considered an initial public offering for the company.

Enovis expects Lima to contribute up to $300 million to its revenue in 2024, and generate cost synergies of about $40 million, the sources 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. (Reporting by David Carnevali in New York; Editing by Sonali Paul)