Enovis Company (NYSE: ENOV), an innovation-driven, medical know-how firm, entered right into a definitive settlement to accumulate Lima Company S.p.A. (“Lima”), a privately held international orthopedic chief and a pioneer of titanium 3D printed orthopedic implants.

The €800 million transaction features a money fee of €700 million at closing, and €100 million in shares of Enovis widespread inventory anticipated to be issued inside 18 months after closing. Enovis plans to finance the money portion of the consideration by means of a mix of money readily available, availability below its current revolving credit score facility, and dedicated financing from UBS Funding Financial institution and J.P. Morgan Securities LLC.

The Firm expects Lima to generate gross sales of $290-$300 million and $70-$75 million of adjusted EBITDA in 2024. The transaction is anticipated to be accomplished in early 2024, topic to the receipt of relevant regulatory approvals and customary closing situations.

There is no such thing as a change to Enovis’ beforehand introduced 2023 full-year steerage, which contemplates natural gross sales progress of 7-7.5%, adjusted EBITDA of $262-$270 million and adjusted earnings per diluted share of $2.22-2.36. The Firm expects the acquisition to be impartial to barely accretive to 2024 adjusted earnings per share and accretive in 2025 and past.

Based in 1945, Lima is a world orthopedic firm with diversified revenues that has grown at a excessive single digit CAGR during the last 10 years, rising into the low teenagers within the final a number of years. Lima’s pioneering technological options, together with digital innovation and patient-tailored {hardware}, are developed to empower surgeons and enhance affected person outcomes following joint alternative surgical procedure.

“We’re assured the acquisition of Lima will allow us to construct on our sturdy progress trajectory and international management in orthopedic options to create speedy and sustainable worth for our sufferers, clients, workers and shareholders,” mentioned Matt Trerotola, Chair and Chief Govt Officer of Enovis. “With Lima’s complementary surgical options and clients, we could have the chance to enlarge our worthwhile recon portfolio and additional broaden our international presence. As well as, this acquisition will allow us to ship enhanced monetary outcomes by means of important cross-selling income progress alternatives and significant value synergies.”

Based by the Lualdi household and headquartered in San Daniele del Friuli, Italy, LimaCorporate is a world orthopaedic implant producer. Its heritage of innovation is mirrored in its industry-leading know-how in additive manufacturing, corresponding to its proprietary Trabecular Titanium (TT) know-how. LimaCorporate has grown over time to turn out to be one of many main European orthopaedic corporations, increasing its product portfolio primarily by means of in-house innovation and the development of its 3D printing capabilities.

Massimo Calafiore, CEO of LimaCorporate, mentioned, “I’m happy with the worth we’ve got created over time and particularly within the final twelve months. I wish to personally thank all Lima Folks for the vitality, enthusiasm, and motivation they all the time demonstrated of their on a regular basis work. Moreover, I wish to thank EQT for having been a supportive associate in investing in our firm and contributing considerably to LimaCorporate’s progress. The relentless work of this Management Staff and your complete group over the last 12 months, aimed toward serving to sufferers and creating worth, made doable for Lima to face up as one of the thrilling corporations within the house. The brand new mixture with Enovis is a key milestone in our journey and I’m trying ahead to seeing the mixed Group proceed to develop progressive merchandise for surgeons to revive the eMotion of Movement in our sufferers”.

LimaCorporate, along with EQT, has been investing to solidify its core providing and improve manufacturing capability within the face of quickly rising demand, whereas additional growing expertise to execute the market growth, with accelerated international progress. In 2022, the corporate reached revenues of EUR 249 million and count on to proceed bringing vital innovation to surgeons and sufferers as a part of Enovis.

By changing into a part of the NYSE-listed Enovis group, LimaCorporate will profit from a better international community and new industrial alternatives due to the complementarity of the 2 corporations’ product portfolios and market penetration. New investments will speed up the completion of the brand new manufacturing constructing on the Headquarter in San Daniele del Friuli. The native manufacturing vegetation will proceed to assist the worldwide growth of the Group.

Matteo Thun, Accomplice inside EQT Non-public Fairness’s Advisory Staff, mentioned, “LimaCorporate is a real instance of refined engineering and know-how designed to empower surgeons and to enhance sufferers’ lives. EQT is proud to have been a part of the Firm’s journey and I need to thank the administration workforce and all the workers of LimaCorporate, who work enthusiastically day by day to convey life-changing merchandise to sufferers around the globe. It’s thrilling to see a world participant like Enovis becoming a member of forces with LimaCorporate in such a strategic mixture”.