Proto Labs to acquire Rapid Manufacturing Group
Proto Labs has entered into an agreement to acquire Rapid Manufacturing Group (RAPID), a custom parts supplier specializing in sheet metal fabrication and CNC machining.
MAPLE PLAIN, MN—Proto Labs has entered into an agreement to acquire Rapid Manufacturing Group (RAPID; Nashua, NH), a custom parts supplier specializing in sheet metal fabrication and CNC machining. With the acquisition, Proto Labs will be able to offer its customers another quick-turn manufacturing service while expanding its CNC machining capabilities.
RAPID was founded in 2001 on the idea of using automation to provide custom sheet metal parts faster than traditional methods. Laser cutting generates the first 2D part of the sheet metal manufacturing cycle. The company has since grown in terms of both capabilities and scale, including the addition of CNC machining, and they now operate in 140,000 sq. ft. of manufacturing space. The company currently employs approximately 300 people, and will expand Proto Labs’ team to more than 2000 employees worldwide.
This expansion of Proto Labs’ services and capabilities reinforces its promise to customers to continue to seek ways to further optimize product development and improve supply chain efficiencies through a variety of digital manufacturing methods.
Under the terms of the agreement, Proto Labs will acquire RAPID for an aggregate purchase price of $120 million consisting of $110 million in cash and $10 million in Proto Labs stock. RAPID’s 2017 annual revenue is forecasted to be approximately $45 million. The transaction is expected to close by the end of 2017, subject to customary closing conditions.