EQT pauses LimaCorporate auction

Cristiano Dalla Bona , Valentina Caiazzo and Micaela Osella
19 April 2022

Tweet
Facebook
LinkedIn
Google plus
Send to

Private equity firm EQT has paused the sale of its portfolio company LimaCorporate, six sources familiar with the situation told this news service, with a number of these sources saying it was due to macroeconomic factors and limited bidder interest.

The auction of the Italian orthopaedic prosthetics producer stalled in recent months, the sources said.

EQT is however expected to review strategic options for the company also in light of the new management changes and could revamp the sale soon, the same sources said, with one of the sources saying the process could restart in the coming weeks.

The company is undergoing management changes, as its CEO Luigi Ferrari stepped down after almost a decade. Emanuel Bonhomme, who was the company's EMEA manager, will take the interim CEO role while a new manager is selected, one of the sources said.

Morgan Stanley and Credit Suisse which were mandated in 2020 to advise on the exit, are still engaged and will continue advising on the process, two of the sources added.

While the company was ready for a listing at the time, the advisors preferred to wait until healthcare services came under less pressure from the pandemic.

EQT then kicked off the sale of its portfolio company in October 2021 and management was due to collect non-binding offers (NBOs) by mid-November. According to an Italian news report, after a first selection only industry bidders remained in the process with US strategic suitors tipped as particularly interested in the dossier.

Among the potential suitors were Swiss-based Medacta Corporate, Globus Medical, ConMed and Stryker Corporation, as per the report.

The company was marketed off around EUR 65m EBITDA, as reported. In its 1H21 results, it posted EUR 105m revenues, up 16.4% YoY, with an adjusted EBITDA of EUR 30.6m, an increase of 43.7%.

LimaCorporate was founded in 1945 by the Lualdi family as a manufacturer of surgical instruments and throughout its life span has ventured into various fields, including aeronautics and Formula 1.

EQT, Lima Corporate, Credit Suisse, Morgan Stanley declined to comment.