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On January 3, 2024, Enovis Corporation (NYSE: ENOV), an innovative medical technology company, announced the completion of its acquisition of LimaCorporate, an orthopedic company, for nearly $850 million (approximately 6.2 billion RMB).# Enovis Completes Acquisition of Orthopedic Giant Lima CorporateLima, founded in 1945, is a global orthopedic company with diversified revenue and has experienced high compound annual growth rate in the past 10 years.
Lima Corporate has been focusing on orthopedic business since 2000 and has now developed into a globally leading orthopedic company specializing in digital innovation and customized hardware, ranking among the top ten orthopedic joint companies. It once acquired part of Zimmer Biomet's knee and elbow system regional business, strengthening its industrial layout in the joint field.
Lima's pioneering technical solutions are designed to enhance surgeons' operational capabilities and improve patient outcomes following joint replacement surgery.
In this acquisition, Lima Corporate leverages its market-proven surgical solutions and complementary portfolio of technologies.Consolidated Enovis's position in the global orthopedic reconstruction market,And will accelerate the company's global growth and profit expansion. In addition, Lima's product portfolio includes 3D-printed trabecular titanium implants and a comprehensive shoulder repair product line, which will furtherStrengthen Enovis Corporation's position in the rapidly growing extremity products market。
Enovis Chairman and CEO Matt Trerotola said that this acquisition increases Enovis' reconstruction department revenue to 1 billion US dollars, making it a rapidly growing innovator in the global orthopedic reconstruction market. This is an excellent example of Enovis using strategic acquisitions to accelerate growth, adding outstanding technology and talent to the company, and bringing compound value to shareholders.# Review of Acquisition DetailsIn September 2023, Enovis announced its intention to acquire Lima Corporate.Enovis is one of the top 10 orthopedic companies globally, and the valuation of this transaction is approximately $846.4 million (€800 million).（Review:$620 Million! Innovative Medical Device Company Acquires Orthopedic Joint Giant）
This €800 million transaction in the acquisition includes €700 million in cash paid at closing and €100 million in Enovis common stock expected to be issued within 18 months after closing. Enovis plans to fund the cash portion of the consideration through cash on hand, available cash under its existing revolving credit facility, and committed financing from UBS Investment Bank and J.P. Morgan Securities LLC.
The company expects Lima to generate sales of $290 million to $300 million and adjusted EBITDA of $70 million to $75 million by 2024.Enovis expects this acquisition to result in mid- to low-single-digit growth in adjusted earnings per share in 2024, with continued growth in 2025 and beyond.
# Enovis，Expand the footprint through acquisitions
Enovis Corporation is an innovation-driven medical technology growth company dedicated to developing clinically differentiated solutions that significantly improve patient outcomes and optimize workflows. Enovis' extensive range of products, services, and integrated technologies empowers patients in orthopedics and other fields to regain active lifestyles.
(II) Company History
Enovis Corporation was formerly known as Colfax Corporation. In 1995, Enovis Corporation was renamed Colfax Corporation, founded by Steven and Mitchell Rales, the two brothers who previously created Danaher Corporation, known as the "king of mergers and acquisitions." Steven and Mitchell transformed Danaher from a group of discrete manufacturing enterprises into a leading technology innovator with a market value exceeding $100 billion.By adopting this successful method,The Colfax team embarked on a journey to build a world-class global enterprise by acquiring outstanding companies, then improving and expanding them into excellent businesses.. Their first acquisitions, including IMO Industries, Inc. and Allweiler AG, together formed a high-performance pump company named Colfax Fluid Handling.Colfax has developed the Colfax Business System (CBS) as its operating model by adopting proven continuous improvement principles based on the Danaher Business System and the Toyota Production System. CBS has become the foundation of Colfax's culture, laying the groundwork for rapid growth over the following decades.In 2000, Colfax prepared for significant expansion, achieving this through growth and complementary acquisitions.In early 2012, Colfax became a diversified industrial company through the acquisition of Charter International plc. Charter brought two world-class global franchises to Colfax - ESAB and Howden - and created a multi-platform enterprise that provides solutions to customers around the world.By 2015, Colfax's revenue had grown significantly to exceed $3 billion (less than $250 million in 2000), and Matthew Trerotola was appointed as CEO. Mr. Trerotola continues to serve as CEO today. The company also solidified its corporate capabilities through robust talent processes, a strong business system, and a rigorous acquisition engine. This dynamic combination drove improvements in profitability and growth from 2015 to 2019 and was the driving force behind the addition of 15 new businesses, strengthening and expanding Colfax's three global platforms.In 2019, Colfax made a significant investment by acquiring DJO, a leader in orthopedic solutions. This bold acquisition created a new medical technology platform for Colfax, providing a substantial growth runway aligned with global healthcare trends.The company divested the more cyclical portions of its portfolio - Colfax Fluid Handling and Howden.In 2022, Colfax separated from ESAB and was renamed Enovis Corporation – the successful history of the past will become the cornerstone of future business success and will continue at Enovis.(III) Recent Acquisition DynamicsOn April 3, 2023, Enovis announced that it had reached a definitive agreement to acquire Novastep®, a medical device company focused on foot and ankle solutions.
Novastep is a rapidly growing company with an annual revenue of approximately $20 million, and it is a leading enterprise in the field of minimally invasive surgery (MIS) solutions for foot and ankle. The company’s top-class MIS bunion system, Pecaplasty®, is serving a fast-growing segment of the global bunion market, which is valued at about $900 million. MIS bunion surgery has been proven to significantly improve patient outcomes and help patients recover faster with reduced scarring and pain. Pecaplasty® provides surgeons with predictable, highly accurate, and controllable implants.
▲Figure: Pecaplasty® Bunion SystemMoreover, Novastep's portfolio of forefoot and midfoot implants with CE marking, along with a robust OUS channel, will further strengthen Enovis' position in the global foot and ankle market, which is valued at over $3 billion (approximately 20 billion RMB).
On May 3, 2023, Enovis announced the signing of a definitive agreement to acquire the Seal external fixation product line from DNE. The Seal product line of DNE mainly operates an ankle external fixation frame, which helps treat foot and ankle deformities, fractures, and fusions. The rail system of this product has recently received FDA approval for use in daily surgical fixation of the forefoot and hindfoot.
▲Image source: DNE company official websiteEnovis Continues to Expand Its Foot and Ankle Portfolio Through Internal R&D and Acquisitions, Launching Multiple Products Including DynaClip Delta, Quattro, and Star Ankle PSI.LimaCorporate (Lima Medical) is a globally leading orthopedic company headquartered in Italy, specializing in digital innovation and customized hardware. It is committed to orthopedic digital innovation and customer-tailored prostheses, promoting the development of patient-centered clinical solutions. Lima is one of the top ten foreign orthopedic device companies.Lima Corporate is dedicated to providing orthopedic implant products, aiming to address medical challenges alongside clinical orthopedic surgeons through its implant manufacturing technology and products, thereby improving patients' quality of life. The orthopedic products offered by Lima Corporate include joint implants and a complete portfolio of limb implants, with its core implant manufacturing technology being Trabecular Titanium technology.
