EQT launches LimaCorporate sale

Micaela Osella , Valentina Caiazzo and Maryna Irkliyenko
18 October 2021

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Private equity firm EQT has kicked off the sale of portfolio company LimaCorporate, according to five sources.

Teasers for the auction process of the Italian orthopaedic prosthetics producer were dispatched recently to financial sponsors and industry players, four of the sources said. Information memorandums are ready to be sent out, they added.

This dossier is expected to command a significant valuation as investor interest in assets in this sector is very high and the scarcity of similar targets in LimaCorporate's field could act as an additional trigger, one of the sources said, disclosing that several undisclosed PE bidders have already been approached.

However, one of the sources familiar with the situation said that it may not be as easy a sale due to a 2023 bond the company has in place.

Lima will be marketed based on EBITDA of around EUR 65m, two other sources said. In its H1 2021 results, the company posted a revenue increase of 16.4% year-on-year to EUR 105m, with an adjusted EBITDA rise of 43.7% to EUR 30.6m.

In December 2020, Mergermarket reported that the company's management was assessing whether to list on the Milan bourse in early 2021.

EQT started preparations for its exit in November 2020, mandating Credit Suisse and Morgan Stanley. While the company was ready for a listing at the time, the advisers preferred to wait until healthcare services came under less pressure from the coronavirus pandemic, according to the report.

EQT began to consider exiting LimaCorporate in November 2019, Mergermarket previously reported. It began to consider a dual-track exit after receiving an unsolicited approach from an American group, having met with banks about a listing before that.

LimaCorporate specialises in orthopaedic implants, with its product portfolio covering the majority of the orthopaedic product spectrum, including its "SMR" shoulder, "Physica" knee and revision (replacement implant) offerings.

Lima was founded in 1945 by the Italian Lualdi family as a manufacturer of surgical instruments, and throughout its life span has ventured into various fields, including aeronautics and Formula One. Ardian sold the company to EQT in early 2016.

EQT and Morgan Stanley declined to comment. Credit Suisse did not return a request for comment.