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
SPX,
has gained 12.5%.
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