GE solidifies acquisition of additive manufacturing system maker Arcam
GE has agreed to purchase controlling shares of Arcam, which produces metal additive manufacturing systems.
GE (Boston, MA) has agreed to purchase controlling shares of Arcam (Mölndal, Sweden), following the conclusion of the extended public tender offer that ended on November 10, 2016.
Arcam shares tendered during the extended acceptance period, combined with Arcam shares acquired by GE, correspond to approximately 73.57% of the total outstanding shares for GE. In addition, GE filed to further extend the acceptance period for the tender offer to November 29, 2016, to allow remaining shareholders to accept the offer.
Arcam is the inventor of electron beam melting machines for metal-based additive manufacturing and a producer of advanced metal powders, with customers in the aerospace and orthopedic industries. The company generated $80 million in revenues in 2015 with about 320 employees. It also operates AP&C (Boisbriand, QC, Canada; a metal powders operation) and DiSanto Technology (Shelton, CT; a medical additive manufacturing firm), as well as sales and application sites worldwide.
GE's controlling ownership of Arcam stock will enable GE to influence the company and its future direction. GE will invest significantly in Arcam's products and technology, and will ultimately influence the makeup of the Arcam board of directors.
On October 27, 2016, GE had reached an agreement to acquire a 75% stake in metal additive manufacturing specialist Concept Laser (Lichtenfels, Germany) for $599 million (€549 million). The agreement allows for GE to take full ownership over the next several years. Privately held Concept Laser has more than 200 employees, with significant operations in the United States (Grapevine, TX), China, and a global network of more than 35 distributors and agents.
Concept Laser designs and manufactures powder bed-based laser additive manufacturing machines. Its customer base is focused on the aerospace, medical, and dental industries, with a meaningful presence in automotive and jewelry. The company's machine range incorporates both large and small build envelopes, and are capable of processing various powder materials including titanium, nickel-base, cobalt-chromium, and precious metal alloys, as well as hot-work and high-grade steels and aluminum.
GE has also invested approximately $1.5 billion in manufacturing and additive technologies at GE's Global Research Center (GRC; Niskayuna, NY), in addition to building a global additive network of centers focused on advancing the science.
Now, the Arcam and Concept Laser transactions allow GE to supply additive machines, materials, and software for several industry segments, including aerospace, power generation, automotive, medical, and electronics.
For more information, please visit www.geadditive.com.