Enovis to acquire orthopedics co. Lima for nearly $850M
WILMINGTON – Enovis, the medical technology company headquartered in Wilmington’s suburbs, has reached a deal to acquire global orthopedics technology company LimaCorporate for nearly $850 million.
The Italian company known publicly as Lima was founded in 1945 by the Lualdi family and has grown into a global orthopedic implant manufacturer with a presence in 20 international markets, with a focus in Europe. Today the company is privately owned by the equity firm, EQT, and offers products ranging from large joint revision and primary implants to complete extremities solutions.
Enovis is a year-old second chapter for Colfax Corp., a diversified conglomerate that reorganized to set its sights on a more defined vision of growing its products and services. Led by CEO Matt Trerotola, Enovis already featured the assets of the decades-old orthopedic products manufacturer DJO Global, which it acquired for more than $3 billion in 2019.
On Monday, Enovis announced that it has reached a deal to acquire Lima for about 800 million Euros – or more than $845 million as of Tuesday – consisting of 700 million Euros in cash at closing and 100 million Euros in Enovis stock. The cash outlay is anticipated to be made from cash on hand as well as established revolving credit lines. The deal, subject to customary conditions and approvals, is expected to close in early 2024.
The acquisition of Lima will push Enovis to an annual revenue stream of about $1 billion, with about half coming from the fast-growing extremities markets.
Enovis, which already has thousands of employees around the world, will also expand its international markets and improve efficiency with state-of-the-art manufacturing facilities.
“We are confident the acquisition of Lima will enable us to build on our strong growth trajectory and global leadership in orthopedic solutions to create immediate and sustainable value for our patients, customers, employees and shareholders,” Trerotola said in a statement announcing the deal. “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.”
Lima is known for its additive manufacturing, such as its proprietary trabecular titanium, a 3D-printed biomaterial that imitates bone. New investments will reportedly accelerate the completion of a new production building at the Lima headquarters in San Daniele del Friuli, Italy.
Lima’s product portfolio is expected to reach $300 million in sales by the end of next year as its revenues have grown at a high single-digit annual rates over the past decade, and even reaching double-digits in recent years.
“Combining these two leading orthopedic 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 orthopedic products,” Massimo Calafiore, CEO of Lima, said in a statement. “I look forward to working with the Enovis team to create even greater opportunities for growth and continued success.”
News of the deal pushed Enovis’ share price up about 4.5% on Monday, but it fell slightly Tuesday to close at $52.88. The company’s shares have traded under its initial post-split pricing for about a year.